Driven Brands Shareholder Rights Investigation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy DRVN?
Source: PRnewswire
- Shareholder Rights Action: Halper Sadeh LLC is investigating whether certain officers and directors of Driven Brands Holdings Inc. breached their fiduciary duties, potentially allowing shareholders to seek governance reforms and fund recovery.
- Legal Relief Options: Long-term shareholders of Driven Brands may have the opportunity to obtain court-approved financial awards or other relief through legal channels, enhancing the company's transparency and accountability.
- Importance of Participation: Shareholder involvement can improve company policies and oversight mechanisms, thereby increasing shareholder value; Halper Sadeh LLC represents investors globally against securities fraud and corporate misconduct.
- Background of Success: The firm has successfully implemented corporate reforms and recovered millions for defrauded investors, demonstrating its effectiveness and expertise in protecting investor rights.
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Analyst Views on DRVN
Wall Street analysts forecast DRVN stock price to rise
8 Analyst Rating
7 Buy
1 Hold
0 Sell
Strong Buy
Current: 16.610
Low
17.00
Averages
21.14
High
24.00
Current: 16.610
Low
17.00
Averages
21.14
High
24.00
About DRVN
Driven Brands Holdings Inc. is an automotive services company in North America, providing a range of consumer and commercial automotive services, including paint, collision, glass, vehicle repair, oil change and maintenance. The Company's segments include Take 5 and Franchise Brands. The Take 5 segment is primarily composed of the Company and franchise-operated Take 5 Oil Change business. The Franchise Brands segment is primarily composed of its portfolio of franchise brands, which include CARSTAR, Meineke Car Care Centers, Maaco and 1-800-Radiator & A/C, along with other smaller brands and services for both retail and commercial customers such as commercial fleet operators and insurance carriers. Its AutoGlassNow businesses provide glass replacement and calibration services to commercial, retail and insurance customers. Its subsidiaries include All Star Glass, LLC, AGN Glass, LLC, Carstar Canada GP Corp, Boing US Holdco, Inc, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Driven Brands Stock Reaches All-Time Low Following Discovery of Errors in FY2023 and FY2024 Financial Statements, Plummeting 39.5%
Driven Brands Shares Hit Record Low: Driven Brands' shares have reached a record low after the company reported errors in its financial statements for fiscal years 2023 and 2024.
Significant Drop in Stock Value: The stock experienced a substantial decline of 39.5% following the announcement of these financial discrepancies.
See More
Driven Brands Delays Q4 Results Release, Shares Plunge Over 30%
- Results Release Delay: Driven Brands was scheduled to release its Q4 financial results on February 25, 2026, but the audit committee's discovery of material errors in financial statements has led to a delay, directly impacting investor confidence and causing a premarket share drop of over 30%.
- Restatement of Financials: The company announced that its financial statements for fiscal years 2023 and 2024, along with several quarterly reports through September 27, 2025, will need to be restated, indicating that previously reported financial data is no longer reliable and increasing uncertainty about future financial performance.
- Invalid Audit Reports: The independent auditor's reports on these financials and internal controls are also deemed unreliable, highlighting significant challenges in the company's financial transparency and compliance, which could adversely affect its market reputation and investor trust.
- Ongoing Review Process: The review of financial statements and evaluation of internal controls is ongoing, and Driven Brands may identify further material errors, which will exacerbate market concerns regarding its financial health and could lead to increased stock price volatility.
See More
Driven Brands Shareholder Rights Investigation
- Shareholder Rights Action: Halper Sadeh LLC is investigating whether certain officers and directors of Driven Brands Holdings Inc. breached their fiduciary duties, potentially allowing shareholders to seek governance reforms and fund recovery.
- Legal Relief Options: Long-term shareholders of Driven Brands may have the opportunity to obtain court-approved financial awards or other relief through legal channels, enhancing the company's transparency and accountability.
- Importance of Participation: Shareholder involvement can improve company policies and oversight mechanisms, thereby increasing shareholder value; Halper Sadeh LLC represents investors globally against securities fraud and corporate misconduct.
- Background of Success: The firm has successfully implemented corporate reforms and recovered millions for defrauded investors, demonstrating its effectiveness and expertise in protecting investor rights.
See More
Driven Brands Shares Plunge 30% Due to Financial Statement Errors
- Stock Price Plunge: Driven Brands' shares fell over 30% on February 25, 2026, due to the delay in its fourth-quarter earnings release, which directly undermines investor confidence and may lead to further legal actions.
- Financial Statement Errors: The company disclosed significant errors in its fiscal year 2024 financial statements, including lease recording issues and cash account discrepancies that inflated cash and revenue figures, impacting financial transparency.
- Audit Report Invalidated: Driven Brands stated that its Independent Registered Public Accounting Firm's audit report should not be relied upon, raising investor concerns about corporate governance and internal controls, which could exacerbate market anxiety.
- Legal Investigation Initiated: Faruq & Faruqi LLP has begun investigating Driven Brands, encouraging affected investors to reach out, indicating potential legal liabilities and risks of investor claims against the company.
See More
Driven Brands Under Investigation for Securities Fraud Claims
- Investigation Background: Ademi LLP is investigating Driven Brands for potential securities fraud due to possibly inaccurate statements regarding its financial reports, business operations, and future prospects, which could undermine investor confidence.
- Financial Errors: Driven Brands has identified significant errors in its financial statements for 2023, 2024, and 2025, necessitating restatements and delays in reporting, which may negatively impact the company's stock price and market reputation.
- Compliance Scrutiny: The investigation focuses on whether Driven Brands had adequate controls and systems in place for financial reporting and accounting, which will directly affect its future compliance and investor trust.
- Legal Implications: Should the investigation confirm fraudulent activities, Driven Brands may face lawsuits and liability for damages, potentially leading to profound effects on its financial health and shareholder value.
See More
Driven Brands Stock Plummets 35% After Financial Statement Errors
- Financial Statement Errors: Driven Brands reported to the SEC that there were significant errors in its consolidated financial statements for the fiscal years ending December 28, 2024, and December 30, 2023, causing a 35% drop in stock price by 10:40 a.m. ET, indicating serious challenges in financial transparency and compliance.
- Wide-Ranging Errors: The errors include issues with the completeness and accuracy of lease records, misclassification of supply and other expenses, and unreconciled cash account differences, necessitating a restatement of financial data for the past two years, which undermines investor confidence.
- Diminished Profit Outlook: Although sales have remained stable, Driven Brands has not reported a profit in three years and carries approximately $2.6 billion in net debt, significantly lowering market expectations for a turnaround in profitability in 2025, exposing investors to greater risks.
- Reporting Delay Impact: The company plans to file a Form 12b-25 with the SEC to request a 15-day extension for submitting its Annual Report for fiscal 2025, and this delay may further exacerbate market uncertainty, prompting investors to consider selling shares to mitigate losses.
See More
Driven Brands Stock Reaches All-Time Low Following Discovery of Errors in FY2023 and FY2024 Financial Statements, Plummeting 39.5%
Driven Brands Shares Hit Record Low: Driven Brands' shares have reached a record low after the company reported errors in its financial statements for fiscal years 2023 and 2024.
Significant Drop in Stock Value: The stock experienced a substantial decline of 39.5% following the announcement of these financial discrepancies.
See More
Driven Brands Delays Q4 Results Release, Shares Plunge Over 30%
- Results Release Delay: Driven Brands was scheduled to release its Q4 financial results on February 25, 2026, but the audit committee's discovery of material errors in financial statements has led to a delay, directly impacting investor confidence and causing a premarket share drop of over 30%.
- Restatement of Financials: The company announced that its financial statements for fiscal years 2023 and 2024, along with several quarterly reports through September 27, 2025, will need to be restated, indicating that previously reported financial data is no longer reliable and increasing uncertainty about future financial performance.
- Invalid Audit Reports: The independent auditor's reports on these financials and internal controls are also deemed unreliable, highlighting significant challenges in the company's financial transparency and compliance, which could adversely affect its market reputation and investor trust.
- Ongoing Review Process: The review of financial statements and evaluation of internal controls is ongoing, and Driven Brands may identify further material errors, which will exacerbate market concerns regarding its financial health and could lead to increased stock price volatility.
See More
Driven Brands Shareholder Rights Investigation
- Shareholder Rights Action: Halper Sadeh LLC is investigating whether certain officers and directors of Driven Brands Holdings Inc. breached their fiduciary duties, potentially allowing shareholders to seek governance reforms and fund recovery.
- Legal Relief Options: Long-term shareholders of Driven Brands may have the opportunity to obtain court-approved financial awards or other relief through legal channels, enhancing the company's transparency and accountability.
- Importance of Participation: Shareholder involvement can improve company policies and oversight mechanisms, thereby increasing shareholder value; Halper Sadeh LLC represents investors globally against securities fraud and corporate misconduct.
- Background of Success: The firm has successfully implemented corporate reforms and recovered millions for defrauded investors, demonstrating its effectiveness and expertise in protecting investor rights.
See More
Driven Brands Shares Plunge 30% Due to Financial Statement Errors
- Stock Price Plunge: Driven Brands' shares fell over 30% on February 25, 2026, due to the delay in its fourth-quarter earnings release, which directly undermines investor confidence and may lead to further legal actions.
- Financial Statement Errors: The company disclosed significant errors in its fiscal year 2024 financial statements, including lease recording issues and cash account discrepancies that inflated cash and revenue figures, impacting financial transparency.
- Audit Report Invalidated: Driven Brands stated that its Independent Registered Public Accounting Firm's audit report should not be relied upon, raising investor concerns about corporate governance and internal controls, which could exacerbate market anxiety.
- Legal Investigation Initiated: Faruq & Faruqi LLP has begun investigating Driven Brands, encouraging affected investors to reach out, indicating potential legal liabilities and risks of investor claims against the company.
See More
Driven Brands Under Investigation for Securities Fraud Claims
- Investigation Background: Ademi LLP is investigating Driven Brands for potential securities fraud due to possibly inaccurate statements regarding its financial reports, business operations, and future prospects, which could undermine investor confidence.
- Financial Errors: Driven Brands has identified significant errors in its financial statements for 2023, 2024, and 2025, necessitating restatements and delays in reporting, which may negatively impact the company's stock price and market reputation.
- Compliance Scrutiny: The investigation focuses on whether Driven Brands had adequate controls and systems in place for financial reporting and accounting, which will directly affect its future compliance and investor trust.
- Legal Implications: Should the investigation confirm fraudulent activities, Driven Brands may face lawsuits and liability for damages, potentially leading to profound effects on its financial health and shareholder value.
See More
Driven Brands Stock Plummets 35% After Financial Statement Errors
- Financial Statement Errors: Driven Brands reported to the SEC that there were significant errors in its consolidated financial statements for the fiscal years ending December 28, 2024, and December 30, 2023, causing a 35% drop in stock price by 10:40 a.m. ET, indicating serious challenges in financial transparency and compliance.
- Wide-Ranging Errors: The errors include issues with the completeness and accuracy of lease records, misclassification of supply and other expenses, and unreconciled cash account differences, necessitating a restatement of financial data for the past two years, which undermines investor confidence.
- Diminished Profit Outlook: Although sales have remained stable, Driven Brands has not reported a profit in three years and carries approximately $2.6 billion in net debt, significantly lowering market expectations for a turnaround in profitability in 2025, exposing investors to greater risks.
- Reporting Delay Impact: The company plans to file a Form 12b-25 with the SEC to request a 15-day extension for submitting its Annual Report for fiscal 2025, and this delay may further exacerbate market uncertainty, prompting investors to consider selling shares to mitigate losses.
See More
