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

Key Dates and Disclosure Events Shareholders Need to Know

NEW YORK, April 15, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP encourages investors who suffered losses in Driven Brands Holdings Inc. (NASDAQ: DRVN) to contact the firm. Those who purchased DRVN securities between May 9, 2023, and February 24, 2026, may be entitled to recover damages. Find out if you are eligible to recover losses. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

Driven Brands shares collapsed nearly 40%, falling from $16.61 to $9.99 per share, a loss of $6.62 per share, after the Company disclosed sweeping financial restatements spanning nearly three years. The window to apply for lead plaintiff closes on May 8, 2026.

May 9, 2023: The Class Period Opens With Overstated Results

The lawsuit chronicles a pattern of alleged misrepresentations that began with the Company's Q1 2023 10-Q filing, which touted revenue growth of 20% to $562 million. The complaint contends this filing contained errors tied to an unreconciled cash balance that inflated revenue and understated operating expenses. This filing, and each subsequent quarterly and annual report through Q3 2025, allegedly carried forward these embedded inaccuracies.

February 28, 2024: Annual Report Compounds Prior Errors

The Company filed its amended 2023 10-K/A, reporting $2.304 billion in total net revenue for fiscal year 2023. The securities action alleges this annual figure incorporated the same and potentially further unreconciled cash errors, meaning investors received a full-year financial picture built on a flawed foundation.

November 5, 2025: Management Certifies Controls as Effective

In the Q3 2025 10-Q, the Company's senior leadership certified that disclosure controls and procedures were "designed effectively" as of September 27, 2025. As detailed in the action, this certification proved false when, less than four months later, management conceded that internal controls were not effective as of December 27, 2025.

February 25, 2026: The Restatement Announcement

Instead of releasing fourth-quarter earnings as scheduled, the Company filed a Form 8-K disclosing that its Audit Committee had concluded there were material errors across at least ten categories of financial reporting. PricewaterhouseCoopers LLP stated that prior financial statements and internal controls should not be relied upon.

Timeline of Alleged Disclosure Failures

• May 9, 2023 through November 5, 2025: Nine consecutive quarterly and annual SEC filings allegedly contained material errors in revenue, cash balances, and operating expenses
• Fiscal years 2023 and 2024: Unreconciled cash balance allegedly overstated cash and revenue while understating SG&A expenses
• November 5, 2025: Disclosure controls certified as effective despite errors already embedded in the financial statements
• February 23, 2026: Audit Committee reached its conclusion regarding material errors, two days before public disclosure
• February 25, 2026: Ten categories of errors disclosed, triggering a nearly 40% stock decline on heavy trading volume

Submit your claim before the deadline or call (212) 363-7500.

"Timely disclosure of material developments is fundamental to fair and efficient markets. The chronology in this case raises important questions about why errors spanning multiple fiscal years were not identified and corrected sooner." -- Joseph E. Levi, Esq.

ABOUT THE FIRM -- For over two decades, Levi & Korsinsky has represented shareholders in securities class actions. Ranked in ISS Top 50 for seven consecutive years. Those wishing to serve as lead plaintiff must act by May 8, 2026.

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, LLP