DRVN Investor Alert: Driven Brands Holdings Inc. Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After Allegedly Concealing Financial Reporting Failures: Levi & Korsinsky

Notice to Pension Funds, Asset Managers, and Fiduciaries

NEW YORK, April 29, 2026 /PRNewswire/ -- Institutional investors holding positions in Driven Brands Holdings Inc. (NASDAQ: DRVN) during the period between May 9, 2023, and February 24, 2026, may wish to evaluate lead plaintiff opportunities in a pending securities class action. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

DRVN shares lost nearly 40% of their value in a single session, declining $6.62 per share to close at $9.99 on February 25, 2026, after the Company disclosed sweeping material errors across nearly three years of consolidated financial statements. The Court has set May 8, 2026 as the deadline to apply for lead plaintiff appointment.

Notice to Institutional Holders

Pension funds, mutual funds, hedge funds, and other institutional holders that maintained DRVN positions during the Class Period face potential portfolio losses stemming from the Company's alleged multi-year financial misstatements. A securities class action has been filed in the United States District Court for the Southern District of New York asserting claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

The action contends that Driven Brands issued materially inaccurate financial statements from fiscal year 2023 through the third quarter of fiscal year 2025, overstating revenue and cash while understating operating expenses due to an unreconciled cash balance originating in 2023. On February 25, 2026, the Company disclosed at least ten categories of errors requiring restatement across approximately two years of financial reporting.

ERISA and Fiduciary Considerations

Institutional fiduciaries should be aware of the following considerations:

• Funds holding DRVN common stock purchased between May 9, 2023, and February 24, 2026, may qualify as class members in this action
• Lead plaintiff appointment allows institutional investors to select counsel, shape litigation strategy, and oversee settlement negotiations on behalf of the class
• Institutions with the largest financial interest in the relief sought are given preference under the Private Securities Litigation Reform Act
• Serving as lead plaintiff requires no out-of-pocket costs; attorneys' fees are paid from any recovery obtained for the class
• Fiduciaries have an obligation to evaluate available legal remedies to recover losses for plan beneficiaries and fund participants
• Institutions that do not seek lead plaintiff status remain absent class members and retain the right to share in any recovery

Contact us for institutional recovery options or call Joseph E. Levi, Esq. at (212) 363-7500.

Portfolio Impact Assessment

"Institutional investors play a critical role in securities class actions. Their participation ensures that the class is represented by sophisticated parties with substantial losses and the resources to oversee complex litigation on behalf of all shareholders who were harmed by allegedly inaccurate financial disclosures," stated Joseph E. Levi, Esq., managing partner of Levi & Korsinsky, LLP.

The complaint details that PricewaterhouseCoopers LLP, the Company's independent auditor, reported that Driven Brands' financial statements and internal control over financial reporting should not be relied upon. As alleged, the Company's own management conceded material weaknesses in internal controls as of December 27, 2025.

Case Summary

The securities action alleges that Driven Brands issued false and misleading SEC filings throughout the Class Period, including quarterly 10-Q reports and annual 10-K filings that contained overstated revenue figures, inflated cash balances, and understated selling, general, and administrative expenses.

INSTITUTIONAL INVESTOR REPRESENTATION -- Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
[email protected]
Tel: (212) 363-7500
Fax: (212) 363-7171

SOURCE Levi & Korsinsky