A class action lawsuit was filed against automotive firm Driven Brands Holdings (DRVN) on March 9, 2026.
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Shareholders in the federal securities lawsuit allege that they bought shares in Driven Brands at artificially inflated prices between May 9, 2023 and February 24, 2026, known as the Class Period. They are now seeking compensation for financial losses incurred upon public revelation of the company’s alleged misconduct during that time. They allege that the company misrepresented its financial condition and the effectiveness of its internal controls through a series of inaccurate financial reports.
To learn whether you may be eligible for a recovery under the lawsuit click here.
What Does Driven Brands Do?
Driven Brands is the largest automotive services company in North America. Its services include car maintenance, car wash, collision and glass. It also acts as a holding company for well-known brands such as Take 5 Oil Change, Meineke Car Care Centers, Maaco and Auto Glass Now.
It was founded in 1972 and has been trading publicly since 2021. It is based in Charlotte, North Carolina and has 10,700 employees at more than 4,800 locations.
What Did Driven Brands Claim?
As alleged, the company and/or Individual Defendants repeatedly made false and misleading public statements throughout the Class Period.
In a quarterly report filed at the beginning of the Class Period, for instance, Driven Brands stated that its revenues had increased 20% to $562 million driven by same store sales and net store growth.
Then, in a quarterly report filed on May 8, 2024, the company said: “We have continued to grow our base of consistent recurring revenue by adding new franchised and company-operated stores and same store sales growth. Driven Brands generated net revenue of approximately $572 million during the three months ended March 30, 2024, an increase of 2% compared to the prior year, and system-wide sales of approximately $1.6 billion during the three months ended March 30, 2024, an increase of 7% from the prior year.”
Lastly, in an annual report filed with the SEC on December 28, 2024, the company stated: “Our portfolio of brands continues to generate consistent recurring revenue with strong operating margins. Our network generated approximately $2.3 billion in net revenue from approximately $6.5 billion in system-wide sales in 2024” which purportedly represented “an increase of 2% compared to the prior year.”
Why Shareholders are Suing Driven Brands
Driven Brands and six of its current and/or former senior officers (the “Individual Defendants”) are now accused of deceiving investors by lying and withholding important information about the company’s business practices and prospects during the Class Period.
In particular, they are accused of omitting truthful information about mistakes made in certain financial statements from SEC filings and related material. By knowingly or recklessly doing so, they allegedly caused Driven Brands stock to trade at artificially inflated prices during the time in question.
The truth, according to shareholders, came out on February 25, 2026. That’s when the company filed a form with the SEC disclosing that Driven Brands had identified no less than seven different types of “material errors” in Driven Brands’ consolidated financial statements for fiscal years 2023 and 2024, as well as in quarterly periods in 2025. These mistakes included errors in cash accounts; lease recording; classification of expenses; and “other errors.”
In this context, the company also stated that: “In connection with the Restatement, management has identified material weaknesses in the company’s internal control over financial reporting resulting in the conclusion that our internal control over financial reporting and disclosure controls and procedures were not effective as of December 27, 2025.”
On a separate form also filed with the SEC that day, Driven Brands announced that the Company would delay the filing of its Annual Report on Form 10-K for the fiscal year 2025 as a result of the need to restate its financials for fiscal years 2023, 2024, and the first three quarters of 2025.
Actions You May Take
If you have purchased the Company’s stock during the Class Period, you may join the lawsuit as a lead plaintiff, remain a passive class member, or opt out of this litigation and pursue individual claims that may not be available to the class as a whole. To learn more about your options, click here.
The deadline to file for lead plaintiff in this lawsuit is May 8, 2026.