Driven Brands $25M Securities Class Action Settlement

William C. Gendron

Editor in Chief

Published

March 12, 2026 2:37 PM

Updated

March 12, 2026

Who can file a claim?

The settlement class includes all persons and entities who purchased Driven Brands Holdings Inc. common stock (ticker: DRVN, CUSIP: 26210V102) between Oct. 27, 2021, and Aug. 1, 2023, inclusive.

Additional details

Both individuals and entities can be class members.
Each separate legal entity or separately managed account must submit a separate claim.
Joint beneficial owners must each sign the claim form.
Agents, executors, administrators, guardians and trustees may submit claims on behalf of others and provide proof of authority.

How much can class members get?

The total settlement fund is $25,000,000. The amount each class member receives depends on several factors:

The number of valid claims submitted
The number of shares purchased during the class period
The timing of each purchase and sale
The total recognized losses of all claimants

The settlement administrator will distribute payments on a pro rata basis according to the court-approved plan of allocation:

The estimated average recovery is approximately $0.85 per eligible share before deductions for fees and expenses.
Actual payments may be higher or lower depending on individual claims and the total number of valid claims.
The settlement administrator will calculate each class member's payment based on the recognized loss amount assigned to each transaction.
Recognized loss amounts are based primarily on the difference in artificial inflation at the time of purchase and time of sale as set forth in the plan of allocation's inflation table (pages 17-18 of the settlement notice).
The settlement administrator will apply different formulas depending on when class members purchased and sold their shares.

For shares sold before the close of trading on Oct. 25, 2022, the recognized loss is $0.
For shares sold from Oct. 26, 2022, through the close of trading on Aug. 1, 2023, the recognized loss is the lesser of the difference in artificial inflation per share at purchase and sale or the purchase price minus the sale price.
For shares sold from Aug. 2, 2023, through the close of trading on Oct. 30, 2023, the recognized loss is the least of the artificial inflation at purchase, the purchase price minus the average closing price from Aug. 2, 2023, through the date of sale or the purchase price minus the sale price.
For shares held as of the close of trading on Oct. 30, 2023, the recognized loss is the lesser of the artificial inflation at purchase or the purchase price minus $13.28 (the average closing price during the 90-day look-back period).

If a claimant had a market gain on overall transactions in Driven common stock during the class period, the recognized claim will be $0.
The settlement administrator will set any recognized loss that calculates to a negative number or zero to $0.
If total recognized claims exceed the net settlement fund, the settlement administrator will reduce payments on a pro rata basis.
Class members whose payment would be less than $10 will not receive a payout.

How to claim a Driven Brands settlement payment

Class members may file a claim online or download, print and complete the PDF claim form and mail it to the settlement administrator. The claim deadline is July 6, 2026.

Settlement administrator's mailing address: Driven Brands Securities Litigation, c/o Strategic Claims Services, P.O. Box 230, 600 N. Jackson St., Suite 205, Media, PA 19063

Proof or documentation required to submit a claim

All class members must provide the last four digits of their Social Security number or taxpayer identification number. They must also provide holdings, purchase and sale information, including:

Number of shares of Driven common stock held as of the close of trading on Oct. 26, 2021
Purchases and sales of Driven common stock from Oct. 27, 2021, through Oct. 30, 2023
Number of shares held as of the close of trading on Oct. 30, 2023

Class members must also provide documentation to support their holdings and transactions in Driven common stock. Acceptable proof includes:

Broker confirmation slips
Broker account statements
Authorized statements from a broker containing the transactional and holding information found in a confirmation slip

Payout options

Physical check

$25 million settlement fund

The $25,000,000 settlement fund includes:

Settlement administration costs: To be determined
Attorneys' fees: Up to $6,250,000
Attorneys' expenses: Up to $500,000
Payments to eligible class members: Remainder of the fund

Important dates

Opt-out deadline: May 11, 2026
Fairness hearing: June 1, 2026
Deadline to file a claim: July 6, 2026

When is the Driven Brands securities class action settlement payout date?

The settlement administrator will issue payments after it processes all claims and the court resolves any appeals and approves the settlement and plan of allocation.

Why did this class action settlement happen?

The class action lawsuit alleged Driven Brands and former executives Jonathan G. Fitzpatrick and Tiffany L. Mason violated federal securities laws by making false and misleading statements about the company's efforts to create a nationwide auto-glass business and operational execution and customer retention in its car wash business. The plaintiffs claimed these misrepresentations inflated the price of Driven Brands common stock during the class period.

The defendants denied all allegations of wrongdoing but agreed to settle to avoid the risks, costs and delays of continued litigation.