DRVN Investor Alert: Driven Brands Holdings Inc. Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After CFO Allegedly Signed Misstated Financials: Levi & Korsinsky

Executive Accountability: Michael F. Diamond Named in Securities Action

NEW YORK, April 22, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors that Michael F. Diamond, Chief Financial Officer of Driven Brands Holdings Inc. (NASDAQ: DRVN), is named as an individual defendant in a securities class action filed on behalf of shareholders who purchased DRVN securities between May 9, 2023, and February 24, 2026. Find out if you can recover losses tied to executive misconduct or contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.

Driven Brands shares plummeted nearly 40%, losing $6.62 per share, after the Company disclosed on February 25, 2026, that nearly three years of financial statements required restatement due to material errors spanning ten categories. The lead plaintiff deadline is May 8, 2026.

Michael F. Diamond's Role During the Class Period

Diamond assumed the role of Chief Financial Officer on August 9, 2024, making him the Company's top finance executive during a critical stretch of the Class Period. The action contends that Diamond bore direct responsibility for the accuracy of financial disclosures filed under his watch, including:

• The Q3 2024 10-Q filed November 7, 2024, reporting approximately $592 million in quarterly net revenue and $249 million in cash balances now subject to restatement
• The fiscal year 2024 10-K filed February 26, 2025, reporting $2.34 billion in annual net revenue and claiming a 2% year-over-year increase
• The Q1 2025 10-Q filed May 8, 2025, reporting approximately $516.2 million in quarterly revenue

Diamond co-signed each of these filings alongside the Company's CEO, the complaint identifies.

Diamond's Expanded Accounting Oversight

Following the resignation of Chief Accounting Officer Michael Beland in January 2025, Diamond assumed the additional role of interim principal accounting officer. The pleading asserts that this dual responsibility placed Diamond at the center of both the Company's financial reporting and its accounting controls during a period when an unreconciled cash balance originating in 2023 was allegedly causing revenue to be overstated and operating expenses to be understated across multiple reporting periods.

Diamond held the interim accounting role until Rebecca Fondell assumed that position in May 2025.

Diamond's Certifications and Liability

As CFO, Diamond signed Sarbanes-Oxley certifications under Sections 302 and 906 attesting that the Company's financial statements fairly presented its financial condition and that disclosure controls were effective. The securities action charges that these certifications were materially false given the ten categories of errors later identified by the Audit Committee.

As averred in the complaint, Diamond possessed the power and authority to control the content and form of the Company's SEC filings, and had access to material non-public information regarding the true state of the Company's financial reporting.

Section 20(a) Context for Michael F. Diamond

The action asserts claims under Section 20(a) of the Exchange Act, which holds controlling persons jointly and severally liable for primary violations of the securities laws. The complaint charges that Diamond, by virtue of his senior position, stock ownership, and participation in the preparation of the Company's public filings, acted as a controlling person of Driven Brands.

"Individual officers who sign SEC certifications bear personal responsibility for the accuracy of corporate disclosures. When a company is forced to restate nearly three years of financial statements across ten error categories, questions about executive accountability are unavoidable." -- Joseph E. Levi, Esq.

LEAD PLAINTIFF DEADLINE: May 8, 2026

Submit your claim to join the Driven Brands recovery or call Joseph E. Levi, Esq. at (212) 363-7500.

Levi & Korsinsky, LLP, Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered for investors.

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