Company Announcements

Lawsuit Alleges Pervasive Accounting Errors and Internal Control Failures Spanning 2023–2025; Firm Reminds Investors of May 8 Lead Plaintiff Deadline

SAN FRANCISCO , March 12, 2026 /PRNewswire/ -- National shareholder rights law firm Hagens Berman is notifying investors that a securities class action lawsuit has been filed against Driven Brands Holdings Inc. (NASDAQ: DRVN) and its top executives.

SUBMIT YOUR DRVN LOSSES NOW

The litigation follows the company's bombshell disclosure that its financial statements for the past two fiscal years can no longer be relied upon due to material accounting errors.

The lawsuit, captioned Clark v. Driven Brands Holdings Inc., et al., No. 1:26-cv-01902, was filed in the U.S. District Court for the Southern District of New York. The action seeks to recover losses for all persons and entities who purchased or otherwise acquired Driven Brands common stock during the Class Period: May 9, 2023, through February 24, 2026, inclusive.

Investors who suffered losses in Driven Brands (DRVN) are encouraged to visit Hagens Berman's DRVN Case Page to learn more about the case and the lead plaintiff process: www.hbsslaw.com/cases/driven-brands

"The Driven Brands case alleges a fundamental failure of corporate oversight and financial transparency," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation of the claims alleged in the pending suit.

The Driven Brands (DRVN) Securities Class Action: Pervasive Accounting Errors

The filed complaint in Clark v. Driven Brandsalleges that defendants violated federal securities laws.

• Material Accounting Errors: On February 25, 2026, Driven Brands revealed material errors in its financial statements for fiscal years 2023 and 2024, as well as all quarterly reports through September 2025.
• Internal Control Breakdown: The company admitted to "material weaknesses" in internal controls over financial reporting, including failures in lease accounting, unreconciled cash accounts, and misclassification of expenses.
• Delayed Filings: Driven Brands was forced to delay its 2025 Form 10-K, leaving investors in the dark regarding the company's true current financial health.
• Market Fallout: On this news, Driven Brands' stock price crashed from a close of $16.61 on February 24, 2026, to open at $9.99 on February 25, 2026—a decline of nearly 40% in a single trading session.

Critical Deadline: May 8, 2026

If you purchased Driven Brands common stock during the Class Period (May 9, 2023 – Feb. 24, 2026), you have until May 8, 2026, to ask the Court to appoint you as Lead Plaintiff.

• SUBMIT YOUR DRVN INVESTMENT LOSSES TO HBSS NOW
• Contact: Reed Kathrein at 844-916-0895 or email DRVN@hbsslaw.com

If you'd like more information and answers to additional frequently asked questions about the Driven case and the firm's investigation, read more »

Whistleblowers: Persons with non-public information regarding Driven should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email DRVN@hbslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

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SOURCE Hagens Berman Sobol Shapiro LLP