Driven Brands Investors Face May 8 Deadline To Seek Lead Role In Securities Case After Restatement

Overview

• Investor notices from national shareholder firms in late March flag a May 8, 2026 cutoff to seek lead-plaintiff status in Clark v. Driven Brands in the Southern District of New York.
• The lawsuit alleges violations of Sections 10(b) and 20(a) and Rule 10b-5, covering a class period from May 9, 2023 through February 24, 2026.
• Driven Brands disclosed on February 25, 2026 that it must restate fiscal 2023 and 2024 results and all 2025 quarters through September 27 after finding material accounting errors.
• The company acknowledged material weaknesses in financial controls involving lease accounting, unreconciled cash, and expense misclassification, while the complaint also cites issues in tax, fixed assets, cloud costs, and revenue recognition in the ATI business.
• Shares dropped nearly 40% after the February 25 filing and 2025 Form 10-K delay, and the case remains at an early stage with no class yet certified.