Driven Brands Investors Face May 8 Lead-Plaintiff Deadline After SEC Restatement Disclosure

Investors who purchased shares of Driven Brands Holdings Inc. between May 3, 2023 and February 24, 2026 have until May 8, 2026 to move for lead-plaintiff status in a securities class action now pending in federal court in North Carolina. The deadline follows a February 25 disclosure in which the automotive-services company told the Securities and Exchange Commission that its audit committee had found material errors across multiple years of financial statements.

The Details

Litigation firm Kahn Swick & Foti issued a reminder notice that investors who suffered losses exceeding $100,000 must file for lead-plaintiff appointment by the close of business on May 8. The case, styled City of Hollywood Police Officers' Retirement System v. Driven Brands Holdings Inc., is proceeding in the U.S. District Court for the Western District of North Carolina. The action was filed as a securities class action covering purchasers during the class period.

A separate investor-alert service, ClaimsFiler, published an independent notice carrying the identical May 8 deadline and case caption. According to that notice, an earlier complaint styled Clark v. Driven Brands Holdings Inc. was first filed in the Southern District of New York. The City of Hollywood Police Officers' Retirement System action followed and expanded the class period to cover purchasers from May 3, 2023 through February 24, 2026.

Context

The legal deadlines trace directly to Driven Brands' February 25, 2026 Form 8-K filing with the U.S. Securities and Exchange Commission. In that disclosure, the company said its audit committee had concluded that previously issued financial statements for fiscal years 2023 and 2024, as well as several interim periods in 2025, contained material errors. The filing stated explicitly that "such financial statements should not be relied upon and required restatement."

The same SEC filing also disclosed that Driven Brands had identified material weaknesses in its internal control over financial reporting and in its disclosure controls and procedures. As a result, the company indicated it expected to file a Form 12b-25 to delay submission of its annual report for fiscal year 2025.

The CollisionWeek publication reported separately that Driven Brands had delayed its earnings release and would restate results for fiscal 2023, 2024 and several interim periods after the audit committee identified the errors.

Driven Brands is the parent company of automotive-service brands including CARSTAR, Abra and Fix Auto USA.

What's Next

With the May 8 lead-plaintiff deadline now only days away, the court will consider any motions filed by investors seeking to coordinate the class action. The underlying claims center on the accounting and internal-control failures that Driven Brands itself disclosed in its SEC filing, rather than a separate operational event at the company. Once the deadline passes, the court is expected to select a lead plaintiff to direct the litigation.