Driven Brands Faces Securities Class Action in SDNY as Law Firms Rally Investors

Overview

• A complaint captioned Clark v. Driven Brands Holdings Inc., No. 1:26-cv-01902, has been filed in the Southern District of New York alleging violations of Sections 10(b) and 20(a).
• Investor notices from Kessler Topaz, DJS Law Group, Bleichmar Fonti & Auld, Rosen Law, Frank R. Cruz, and Hagens Berman invite shareholders to join or move for lead-plaintiff on a contingency-fee basis.
• The suit follows the company’s February 25 disclosure of planned restatements for fiscal 2023–2024 and certain 2025 periods, identification of material weaknesses in internal controls, and a delayed 2025 Form 10-K.
• Allegations cite lease accounting issues affecting right-of-use assets and liabilities, unreconciled cash balances, misclassified supply and other expenses, and improperly recognized revenue in the ATI business.
• Driven Brands’ shares fell nearly 40% on the disclosure; the litigation is at an early stage with no class certified.