Driven Brands Holdings Inc. Securities Fraud Class Actions Arise from Erroneous Financial Statements as Shares Fall About 39%

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NEW YORK and NEW ORLEANS, April 21, 2026 (GLOBE NEWSWIRE) — Kahn Swick & Foti, LLC (“KSF”) and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., reminded investors with substantial losses that they have until May 8, 2026 to file lead plaintiff applications in securities class action lawsuits against Driven Brands Holdings Inc. (NasdaqGS: DRVN) (“Driven” or the “Company”). The actions are pending in the United States District Courts for the Southern District of New York and Western District of North Carolina. Investors who purchased or otherwise acquired the Company’s shares between May 3, 2023 and February 24, 2026, inclusive (the “Class Period”) may be eligible to participate.

Deadline for lead plaintiff applications

Investors who purchased shares of Driven and would like to discuss their legal rights and how the cases might affect their ability to recover for economic loss may contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email at lewis.kahn@ksfcounsel.com, or visit https://www.ksfcounsel.com/cases/nasdaqgs-drvn/ to learn more. To serve as a lead plaintiff in the class action, a petition must be filed with the courts by May 8, 2026.

Allegations in the lawsuits

Driven and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.

Company disclosure and market reaction

On February 25, 2026, the Company disclosed that it had identified at least seven different categories of “material errors” in its consolidated financial statements for fiscal years 2023 and 2024, as well as in quarterly periods in 2025. The Company stated that “such financial statements should not be relied upon and required restatement,” and that it would delay the filing of its Annual Report on Form 10-K for fiscal year 2025 and need to restate its financials for fiscal years 2023 and 2024, and the first three quarters of 2025.

Following the news, Driven Brands’ share price fell nearly 40%, from a close of $16.61 on February 24, 2026, to open at $9.99 on February 25, 2026.

Case information

The first-filed case is Clark v. Driven Brands Holdings Inc., et al., No. 26-cv-01902. A subsequent case, City of Hollywood Police Officers' Retirement System v. Driven Brands Holdings Inc., et al., No. 26-cv-00283, expanded the class period.

About Kahn Swick & Foti, LLC

KSF is a boutique securities litigation law firm. Its partners include former Louisiana Attorney General Charles C. Foti, Jr. The firm states that, this past year, it was ranked by SCAS among the top 10 firms nationally based on total settlement value. KSF serves public and private institutional investors as well as retail investors seeking recoveries for investment losses related to corporate fraud or malfeasance by publicly traded companies. The firm has offices in New York, Delaware, California, Louisiana, Chicago, and a representative office in Luxembourg.