National Law Firm Launches Investigation into Driven Brands Holdings (NASDAQ: DRVN)

NEW YORK – On February 27, 2026, Faruqi & Faruqi, LLP, a leading national securities litigation law firm, announced a shareholder alert and investigation into potential legal claims on behalf of investors of Driven Brands Holdings Inc. (NASDAQ: DRVN) following significant financial reporting issues and a sharp decline in the company’s stock price.

What Triggered the Investigation?

The alert comes after Driven Brands disclosed that it identified material errors in its previously issued financial statements covering multiple reporting periods, including the fiscal years ended December 28, 2024, and December 30, 2023. These errors were found in the company’s Annual Report on Form 10-K for fiscal 2024 and several previously issued quarterly and year-to-date filings. As a result, Driven Brands stated that these financial statements “should not be relied upon” and that restatements are required.

The company also disclosed that the audit report from its independent registered public accounting firm regarding these financial statements and internal controls over financial reporting could no longer be relied upon.

Nature of the Reporting Errors

Some of the specific accounting issues identified by Driven Brands include:

• Lease recording errors that affected right-of-use assets and liabilities.
• Cash account discrepancies that led to overstatements of cash and revenue figures.
• Overstated operating expenses related to company-operated stores.
• Material weaknesses in internal control over financial reporting.

Market Reaction and Investor Impact

Following the announcement, Driven Brands’ share price experienced a precipitous drop of more than 30% on February 25, 2026, as investors reacted to the restatement news and loss of confidence in previously filed financial results.

Faruqi & Faruqi’s alert specifically encourages shareholders and option holders who suffered substantial financial losses in DRVN securities to consider discussing their legal rights with the firm’s experienced team.

About Faruqi & Faruqi, LLP

Faruqi & Faruqi, LLP is a national securities law firm with offices across the United States, including New York, Pennsylvania, California, and Georgia. The firm has secured hundreds of millions of dollars in recoveries for investors since its founding in 1995, and it regularly pursues actions against companies and executives on behalf of harmed shareholders.

Advice for Affected Shareholders

Investors who held Driven Brands stock or options and suffered significant losses may contact Faruqi & Faruqi partner James (Josh) Wilson directly to discuss their legal options. The firm is also providing a dedicated web resource for additional information about the investigation.

This shareholder alert represents just one of several legal actions and investigations initiated by law firms on behalf of DRVN investors, as other firms have also announced inquiries into potential securities law violations at Driven Brands following the company’s disclosure of financial errors.

What This Means for Investors

Restatements and accounting discrepancies can significantly impact investor confidence, stock valuations, and legal liability for corporate officers and directors. As Driven Brands works through the process of restating its financials, shareholders may continue to seek legal recourse if they believe they were misled or harmed by inaccurate financial disclosure.

Next Steps for Concerned Shareholders

Investors should consider the following actions:

• Document investment losses related to Driven Brands stock or options.
• Contact qualified securities litigation counsel promptly to understand legal rights.
• Monitor ongoing legal developments and class action filings related to DRVN.

Shareholders may also follow updates directly through law firm websites or financial news outlets as this situation continues to evolve.

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