Driven Brands Under Legal Investigation for Financial Misstatements
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy DRVN?
Source: Globenewswire
- Financial Statement Errors: On February 25, 2026, Driven Brands disclosed that its Audit Committee found material errors in its financial statements for fiscal years 2024 and 2023, necessitating a restatement that could undermine investor confidence in the company's financial health.
- Significant Stock Price Drop: Following the announcement of these financial issues, Driven Brands' stock price plummeted approximately 30%, which not only affects shareholder returns but may also pose greater challenges for the company in terms of financing and market trust.
- Legal Investigation Initiated: Bragar Eagel & Squire is investigating whether Driven Brands violated federal securities laws, potentially leading to legal claims against the company and its management, which could further impact the company's reputation and future operations.
- Investor Rights Protection: The law firm is encouraging affected investors to reach out to discuss their legal options, highlighting the importance and necessity of protecting investor rights during a financial crisis faced by the company.
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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: 11.450
Low
17.00
Averages
21.14
High
24.00
Current: 11.450
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 Under Legal Investigation for Financial Misstatements
- Financial Statement Errors: On February 25, 2026, Driven Brands disclosed that its Audit Committee found material errors in its financial statements for fiscal years 2024 and 2023, necessitating a restatement that could undermine investor confidence in the company's financial health.
- Significant Stock Price Drop: Following the announcement of these financial issues, Driven Brands' stock price plummeted approximately 30%, which not only affects shareholder returns but may also pose greater challenges for the company in terms of financing and market trust.
- Legal Investigation Initiated: Bragar Eagel & Squire is investigating whether Driven Brands violated federal securities laws, potentially leading to legal claims against the company and its management, which could further impact the company's reputation and future operations.
- Investor Rights Protection: The law firm is encouraging affected investors to reach out to discuss their legal options, highlighting the importance and necessity of protecting investor rights during a financial crisis faced by the company.
See More
Driven Brands Faces Securities Litigation Investigation
- Stock Price Plunge: Driven Brands' shares fell over 30% on February 25 due to the delay in releasing its fourth-quarter report, directly impacting investor confidence and company valuation, potentially leading to further legal actions.
- Financial Statement Errors: The company acknowledged significant errors in its fiscal year 2024 financial statements, including lease recording issues and cash account discrepancies that inflated cash and revenue, necessitating a restatement that will affect future financial transparency.
- Internal Control Deficiencies: Driven Brands identified material weaknesses in its internal controls over financial reporting, which not only undermines the reliability of its financial reports but may also trigger further investigations by regulatory bodies, increasing the legal risks faced by the company.
- Legal Consultation Opportunity: Faruqi & Faruqi LLP is investigating potential claims against Driven Brands and encourages investors who suffered significant losses to reach out, indicating that the company may face collective litigation risks that could further impact its market reputation.
See More
Driven Brands Under Investigation for Securities Law Violations
- Financial Statement Errors: On February 25, 2026, Driven Brands disclosed that its Audit Committee found material errors in its consolidated financial statements for fiscal years 2024 and 2023, indicating these statements should not be relied upon, which could undermine investor confidence and lead to stock price volatility.
- Earnings Release Delay: The company also announced a delay in releasing its financial results for Q4 and the full year of 2025, a decision that may exacerbate market concerns regarding the company's financial transparency and impact shareholder investment decisions.
- Significant Stock Drop: Following this announcement, Driven Brands' stock price fell approximately 30%, reflecting market disappointment with the company's financial condition and potentially leading to pessimistic expectations regarding future performance.
- Legal Firm Involvement: Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws by Driven Brands, indicating the company faces potential legal risks that could affect its reputation and future financing capabilities.
See More
Driven Brands Under Investigation for Securities Violations
- Financial Restatement Announcement: Driven Brands announced on February 25, 2026, that it would restate certain previously issued financial results due to material errors, which could impact the company's financial transparency and investor confidence.
- Significant Stock Price Drop: Following the restatement announcement, Driven's stock price plummeted by $5.01, or approximately 30.2%, from $16.61 per share on February 24, 2026, to close at $11.60, reflecting market concerns over the company's financial health.
- Ongoing Legal Investigation: Kirby McInerney LLP is investigating whether Driven violated federal securities laws or engaged in other unlawful business practices; although no lawsuit has been filed yet, this inquiry could lead to future legal actions.
- Investor Rights Protection: The law firm encourages all investors who purchased or acquired Driven securities to contact them to discuss their rights and interests in this investigation, highlighting the firm's commitment to protecting investor rights.
See More
Driven Brands Under Investigation for Securities Fraud Claims
- Financial Statement Errors: On February 25, 2026, Driven Brands filed a Notice of Non-Reliance with the SEC, admitting to significant errors in its consolidated financial statements for fiscal year 2024, necessitating a restatement that undermines investor confidence in the company's financial health.
- Internal Control Failures: The company disclosed that its internal control over financial reporting and disclosure procedures were ineffective as of December 27, 2025, indicating serious deficiencies in management's oversight of financial transparency and compliance, which could lead to further legal repercussions.
- Stock Price Plunge: Following this news, Driven Brands' stock price fell by $5.01, or 30.16%, closing at $11.60 per share on February 25, 2026, reflecting the market's pessimistic outlook on the company's future prospects.
- Class Action Risk: Pomerantz LLP is investigating potential securities fraud claims on behalf of investors, which could lead to a class action lawsuit, further pressuring the company's reputation and financial standing.
See More
Driven Brands Under Investigation, Stock Plummets 30.2%
- Financial Reporting Errors: On February 25, 2025, Driven Brands disclosed significant errors in its 2023 financial statements, including improperly recognized revenue and unreconciled cash account discrepancies, raising serious concerns about the company's financial integrity among investors.
- Stock Price Plunge: Following the financial disclosure, Driven Brands' stock price plummeted by $5.01, or 30.2%, closing at $11.60 per share on February 25, 2026, directly impacting the asset value of investors significantly.
- Potential Legal Action: The Law Offices of Howard G. Smith have announced an investigation into Driven Brands, aiming to represent affected investors in recovering losses, indicating that the company may face legal liabilities, which further exacerbates market concerns about its future.
- Ongoing Risk Alerts: The company warned that it may identify additional material errors, increasing uncertainty and risk for investors, which could lead to further stock price volatility and a decline in investor confidence.
See More
Driven Brands Under Legal Investigation for Financial Misstatements
- Financial Statement Errors: On February 25, 2026, Driven Brands disclosed that its Audit Committee found material errors in its financial statements for fiscal years 2024 and 2023, necessitating a restatement that could undermine investor confidence in the company's financial health.
- Significant Stock Price Drop: Following the announcement of these financial issues, Driven Brands' stock price plummeted approximately 30%, which not only affects shareholder returns but may also pose greater challenges for the company in terms of financing and market trust.
- Legal Investigation Initiated: Bragar Eagel & Squire is investigating whether Driven Brands violated federal securities laws, potentially leading to legal claims against the company and its management, which could further impact the company's reputation and future operations.
- Investor Rights Protection: The law firm is encouraging affected investors to reach out to discuss their legal options, highlighting the importance and necessity of protecting investor rights during a financial crisis faced by the company.
See More
Driven Brands Faces Securities Litigation Investigation
- Stock Price Plunge: Driven Brands' shares fell over 30% on February 25 due to the delay in releasing its fourth-quarter report, directly impacting investor confidence and company valuation, potentially leading to further legal actions.
- Financial Statement Errors: The company acknowledged significant errors in its fiscal year 2024 financial statements, including lease recording issues and cash account discrepancies that inflated cash and revenue, necessitating a restatement that will affect future financial transparency.
- Internal Control Deficiencies: Driven Brands identified material weaknesses in its internal controls over financial reporting, which not only undermines the reliability of its financial reports but may also trigger further investigations by regulatory bodies, increasing the legal risks faced by the company.
- Legal Consultation Opportunity: Faruqi & Faruqi LLP is investigating potential claims against Driven Brands and encourages investors who suffered significant losses to reach out, indicating that the company may face collective litigation risks that could further impact its market reputation.
See More
Driven Brands Under Investigation for Securities Law Violations
- Financial Statement Errors: On February 25, 2026, Driven Brands disclosed that its Audit Committee found material errors in its consolidated financial statements for fiscal years 2024 and 2023, indicating these statements should not be relied upon, which could undermine investor confidence and lead to stock price volatility.
- Earnings Release Delay: The company also announced a delay in releasing its financial results for Q4 and the full year of 2025, a decision that may exacerbate market concerns regarding the company's financial transparency and impact shareholder investment decisions.
- Significant Stock Drop: Following this announcement, Driven Brands' stock price fell approximately 30%, reflecting market disappointment with the company's financial condition and potentially leading to pessimistic expectations regarding future performance.
- Legal Firm Involvement: Robbins Geller Rudman & Dowd LLP is investigating potential violations of U.S. federal securities laws by Driven Brands, indicating the company faces potential legal risks that could affect its reputation and future financing capabilities.
See More
Driven Brands Under Investigation for Securities Violations
- Financial Restatement Announcement: Driven Brands announced on February 25, 2026, that it would restate certain previously issued financial results due to material errors, which could impact the company's financial transparency and investor confidence.
- Significant Stock Price Drop: Following the restatement announcement, Driven's stock price plummeted by $5.01, or approximately 30.2%, from $16.61 per share on February 24, 2026, to close at $11.60, reflecting market concerns over the company's financial health.
- Ongoing Legal Investigation: Kirby McInerney LLP is investigating whether Driven violated federal securities laws or engaged in other unlawful business practices; although no lawsuit has been filed yet, this inquiry could lead to future legal actions.
- Investor Rights Protection: The law firm encourages all investors who purchased or acquired Driven securities to contact them to discuss their rights and interests in this investigation, highlighting the firm's commitment to protecting investor rights.
See More
Driven Brands Under Investigation for Securities Fraud Claims
- Financial Statement Errors: On February 25, 2026, Driven Brands filed a Notice of Non-Reliance with the SEC, admitting to significant errors in its consolidated financial statements for fiscal year 2024, necessitating a restatement that undermines investor confidence in the company's financial health.
- Internal Control Failures: The company disclosed that its internal control over financial reporting and disclosure procedures were ineffective as of December 27, 2025, indicating serious deficiencies in management's oversight of financial transparency and compliance, which could lead to further legal repercussions.
- Stock Price Plunge: Following this news, Driven Brands' stock price fell by $5.01, or 30.16%, closing at $11.60 per share on February 25, 2026, reflecting the market's pessimistic outlook on the company's future prospects.
- Class Action Risk: Pomerantz LLP is investigating potential securities fraud claims on behalf of investors, which could lead to a class action lawsuit, further pressuring the company's reputation and financial standing.
See More
Driven Brands Under Investigation, Stock Plummets 30.2%
- Financial Reporting Errors: On February 25, 2025, Driven Brands disclosed significant errors in its 2023 financial statements, including improperly recognized revenue and unreconciled cash account discrepancies, raising serious concerns about the company's financial integrity among investors.
- Stock Price Plunge: Following the financial disclosure, Driven Brands' stock price plummeted by $5.01, or 30.2%, closing at $11.60 per share on February 25, 2026, directly impacting the asset value of investors significantly.
- Potential Legal Action: The Law Offices of Howard G. Smith have announced an investigation into Driven Brands, aiming to represent affected investors in recovering losses, indicating that the company may face legal liabilities, which further exacerbates market concerns about its future.
- Ongoing Risk Alerts: The company warned that it may identify additional material errors, increasing uncertainty and risk for investors, which could lead to further stock price volatility and a decline in investor confidence.
See More
