Driven Brands Holdings Inc. Securities Fraud Class Actions Linked to Material Errors in Financial Statements and a 39% Stock Decline

Kahn Swick & Foti, LLC (“KSF”) and KSF partner Charles C. Foti, Jr., a former Attorney General of Louisiana, said investors with substantial losses have until May 8, 2026 to file lead plaintiff applications in securities class action lawsuits against Driven Brands Holdings Inc. (NasdaqGS: DRVN). The actions are pending in the United States District Courts for the Southern District of New York and the Western District of North Carolina. The proposed class period is May 3, 2023 through February 24, 2026, inclusive.

Lead plaintiff deadline

KSF said investors who purchased or otherwise acquired Driven shares during the class period may contact Lewis Kahn, Managing Partner, toll-free at 1-877-515-1850 or by email at lewis.kahn@ksfcounsel.com, or visit https://www.ksfcounsel.com/cases/nasdaqgs-drvn/ to discuss their legal rights. To serve as a lead plaintiff, applicants must petition the courts by May 8, 2026.

Allegations and case background

According to the firm, Driven and certain executives are charged with failing to disclose material information during the class period, in violation of federal securities laws.

KSF cited Driven’s disclosure on February 25, 2026, in which the company said 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 the affected 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 while restating financials for fiscal years 2023 and 2024 and the first three quarters of 2025.

Market reaction

KSF said Driven’s share price fell nearly 40% following the disclosure. The stock closed at $16.61 on February 24, 2026, and opened at $9.99 on February 25, 2026.

Filed lawsuits

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 whose partners include former Louisiana Attorney General Charles C. Foti, Jr. The firm said it was ranked by SCAS among the top 10 firms nationally based on total settlement value. KSF said it represents public and private institutional investors and retail investors seeking recoveries for investment losses tied 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.

Contact

Kahn Swick & Foti, LLC
Lewis Kahn, Managing Partner
lewis.kahn@ksfcounsel.com
1-877-515-1850
1100 Poydras St., Suite 960, New Orleans, LA 70163