Driven Brands Investors Face May 8 Deadline in SDNY Securities Class Action Over Restated Results

The case stems from the company’s admission of pervasive accounting errors that triggered a near-40% one-day share drop.

Overview

Plaintiff firms are recruiting shareholders to seek lead-plaintiff status by May 8, 2026 in Clark v. Driven Brands, now pending in the Southern District of New York.
Notices from Bleichmar Fonti & Auld, Hagens Berman, Kessler Topaz, DJS Law Group, and the Law Offices of Howard G. Smith highlight the race to lead the case.
The complaints say Driven Brands misstated results through lease-accounting errors, unreconciled cash and operating cash flow reporting, expense misclassification, and improper revenue recognition.
After the company disclosed on February 25, 2026 that it would restate 2023–2024 and parts of 2025 and reported control weaknesses and a delayed 2025 Form 10-K, shares fell from $16.61 to $11.60, nearly 40%.
The suit cites Sections 10(b) and 20(a) of the Exchange Act and Rule 10b-5, covers trades from May 9, 2023 through February 24, 2026, and remains at an early stage with no class certified.