Driven Brands Holdings Inc. Securities Lawsuit Investigation

Shamis & Gentile P.A., a law firm that advocates for investors who are victims of securities fraud, is investigating potential claims against Driven Brands Holdings Inc. (DRVN)

If you have held Driven Brands Holdings securities since at least October 2021, you may be eligible to join this securities investigation and seek corporate reforms, return of funds back to the company, and a court-approved incentive reward, at no cost to you.

About Driven Brands Holdings

Driven Brands Holdings operates a portfolio of automotive service businesses, including offerings in car washes, auto glass repair, oil changes, and other vehicle maintenance services.

Driven Brands is the parent company of Meineke Car Care Centers, Maaco, and CARSTAR.

What's being investigated

The investigation focuses on allegations that Driven Brands and certain executives made materially false and misleading statements, as well as omissions, regarding the company’s business integration capabilities and the performance of its car wash and auto glass segments.

According to a recently filed complaint, investors allege that during the class period from October 27, 2021, through August 1, 2023, Driven Brands failed to disclose that its car wash business segment was experiencing widespread equipment failures and poor service, and that the company had not adequately invested in service, equipment, and maintenance, which impaired the segment’s operating capacity. As a result, the car wash segment reportedly suffered from customer loss, increased competition, and declining same-store sales.

Concerning the auto glass segment, the complaint alleges that Driven Brands did not establish or maintain an effective point-of-sale (POS) system to report and store data across the segment, and encountered substantial delays in integrating acquired auto glass businesses due to these data issues.

The company was allegedly forced to overhaul the POS system for its U.S. auto glass business (AGN), creating communication challenges among acquired businesses and the AGN platform. These integration delays purportedly caused customer service issues and hindered revenue growth. Investors further allege that Driven Brands’ public statements about its integration capabilities, car wash performance, and financial guidance were misleading in light of these undisclosed problems.

On August 2, 2023, Driven Brands announced disappointing results related to its car wash business and acknowledged ongoing integration issues. Investors allege this disclosure revealed previously undisclosed problems; resulting in a stock price decline of approximately 41%, causing investors harm.

Your Rights and Next Steps

This is an active shareholder investigation that may lead to a lawsuit brought on behalf of Driven Brands Holdings. If you purchased or held Driven Brands stock during the class period and suffered losses, you may have certain rights.

Potential next steps:

• Participating in a shareholder action on behalf of the company, which seeks to recover funds for Driven Brands and strengthen its internal controls and governance.
• Receiving updates on key filings, court developments, and any settlements or corporate reforms that result from the case.
• Submitting proof of your holdings to confirm eligibility and assist counsel in evaluating potential claims.

Shareholders in derivative actions typically act on behalf of the company to address alleged failures of oversight or internal controls by directors and officers.

What Shareholders Can Do

Securities investigations are time-sensitive. If you purchased Driven Brands Holdings securities prior to October 2021, and still hold shares today, you may be eligible to seek corporate reforms, the return of funds back to the Company, and a court approved incentive award for you, all at absolutely no cost.

Protect your rights, complete the form below to join the investigation.