Driven Brands (DRVN) $800 Million Market Cap Wipeout Amid Improper Accounting, Delayed Financial Report & Pending Restatements - Hagens Berman

SAN FRANCISCO, March 6, 2026 /PRNewswire/ -- On February 25, 2026, investors in Driven Brands Holdings Inc. (NASDAQ: DRVN) saw the price of their shares crater 30%, wiping out more than $800 million of the company's market capitalization.

The tumble lower was triggered by concerning news revealed in Driven's recent SEC filings, which admitted to improper accounting going back to fiscal year 2023.

The development and severe market reaction have prompted national shareholder rights law firm Hagens Berman to investigate whether Driven violated the federal securities laws. The firm urges Driven investors who suffered significant losses to contact the firm now to discuss their rights.

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Driven Brands (DRVN) Investigation:

The investigation is focused on the propriety of Driven's repeated assurances that its financial statements were reliable, prepared in conformity with applicable accounting rules, and that its internal control over financial reporting was effective.

These assurances were undermined on February 25, 2026, when the company admitted that its previously issued annual financial statements for its 2023 and 2024 fiscal years should no longer be relied on. In addition, Driven admitted that its previously issued financial statements for the quarterly periods within fiscal year 2024 as well as for the quarterly periods ended September 27, 2025, June 28, 2025, and March 29, 2025 should no longer be relied on.

Driven also said it would restate those financial statements, correcting for (among other items) revenue overstatements and expense (selling, general, and administrative) understatements.

The company further said there were "material weaknesses in the Company's internal control over financial reporting resulting in the conclusion that our internal control over financial reporting and disclosure controls and procedures were not effective as of December 27, 2025."

Lastly, Driven announced that these determinations prevented it from timely filing its annual financial statements for the year ended December 27, 2025.

"Improper revenue recognition and expense understatement are among the worst accounting missteps affecting investors who have relied on the integrity of any company's financial statements. We're investigating whether, having assured investors of its financial integrity, Driven may have intentionally concealed or obfuscated what apparently was going on behind the scenes," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation.

If you invested in Driven and have substantial losses, or have knowledge that may assist the firm's investigation, submit your losses now »

If you'd like more information and answers to additional frequently asked questions about the firm's Driven investigation, read more »

Whistleblowers: Persons with non-public information regarding Driven should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].

About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

SOURCE Hagens Berman Sobol Shapiro LLP