Law firms investigate Driven Brands over accounting errors
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?



























