Law firms investigate Driven Brands over accounting errors

1 min read     Updated on 10 Jul 2026, 04:08 AM
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Reviewed by
Riya DScanX News Team
AI Summary

Halper Sadeh LLC and Moore Law PLLC are investigating Driven Brands Holdings Inc. for potential fiduciary breaches and accounting errors, including lease recording issues and revenue overstatements. Shareholders may seek damages or reforms.

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Halper Sadeh LLC and Moore Law PLLC are investigating Driven Brands Holdings Inc. for potential breaches of fiduciary duties and accounting irregularities. The investigations focus on materially false and misleading statements, as well as the failure to disclose material adverse facts about the company's business and operations. Shareholders may be able to seek monetary damages, corporate governance reforms, reimbursement to the company, and a court-approved incentive award at no cost.

Moore Law PLLC identified specific errors, including issues with lease recording impacting right-of-use assets and liabilities as of December 28, 2024, and September 27, 2025. The firm also noted errors in reporting cash balances and operating cash flows, leading to overstatements of cash and revenue, and understatement of selling, general, and administrative expenses in fiscal years 2023 and 2024. Additionally, supply and other expenses were improperly presented as company-operated store expenses during the same periods.

Other errors involve income tax provision, supply and other revenue, fixed assets, cloud computing, lease cash applications, and balance sheet and income statement misclassifications. Improperly recognized revenue in Driven Brands’ ATI business, primarily related to fiscal year 2025, was also cited. Halper Sadeh LLC emphasizes that shareholder involvement can improve policies, practices, and oversight mechanisms.

Contact Information

Shareholders are encouraged to contact the respective firms to discuss their rights and options. Both firms handle matters on a contingent fee basis, meaning shareholders would not be responsible for out-of-pocket payment of legal fees or expenses.

Firm Contact Details
Halper Sadeh LLC One World Trade Center, 85th Floor, New York, NY 10007
Daniel Sadeh, Esq.; Zachary Halper, Esq.
(212) 763-0060
sadeh@halpersadeh.com ; zhalper@halpersadeh.com
https://www.halpersadeh.com
Moore Law PLLC 30 Wall Street, 8th Floor, New York, NY 10005
Fletcher Moore
(212) 709-8245
fletcher@fmoorelaw.com
https://www.fmoorelaw.com

What is the likelihood of formal SEC enforcement actions following the identification of these accounting irregularities?

How will the restatement of financials for fiscal years 2023 and 2024 impact Driven Brands' ability to secure future financing?

Will the investigation lead to a restructuring of the company's executive leadership or board of directors?

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RBC Capital lowers Driven Brands target to $17

0 min read     Updated on 12 Jun 2026, 08:05 PM
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Reviewed by
Radhika SScanX News Team
AI Summary

RBC Capital analyst Steven Shemesh maintained an Outperform rating for Driven Brands Hldgs but lowered the price target to $17 from $18, signaling a revised valuation outlook while retaining a positive stance.

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RBC Capital analyst Steven Shemesh has maintained an Outperform rating for Driven Brands Hldgs (NASDAQ: DRVN) while adjusting the valuation outlook. The firm lowered the price target to $17, down from the previous $18, reflecting a revised assessment of the stock's potential.

Analyst Rating

The research note from RBC Capital highlights the firm's continued positive stance on Driven Brands Hldgs despite the reduction in the price target. The adjustment comes as the market evaluates the company's operational trajectory and future performance.

Metric Value
Rating Outperform
Price Target $17
Previous Target $18

What specific operational factors led RBC Capital to revise its valuation outlook for Driven Brands?

How might the lowered price target impact investor sentiment toward Driven Brands in the short term?

What are the key growth drivers that could help Driven Brands meet or exceed the new $17 price target?

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