Kuehn Law, PLLC has launched an investigation into whether certain officers and directors of Driven Brands Holdings Inc. (NASDAQ: DRVN) breached their fiduciary duties to shareholders. The shareholder litigation law firm is examining allegations that the company concealed material weaknesses in its internal controls over financial reporting. According to a federal securities lawsuit, these undisclosed control failures resulted in the inaccurate reporting of the company’s key financial metrics for nearly three years.

The investigation focuses on claims that Driven Brands Holdings misled investors regarding its operational and financial stability. The lawsuit alleges that the company’s financial statements were materially misstated from fiscal year 2023 through the first three quarters of fiscal year 2025. This period of alleged misreporting raises significant concerns about the reliability of historical data used by investors to assess the company’s performance and risk profile.

Shareholder Eligibility and Action

Investors who currently own DRVN shares and purchased them prior to May 9, 2023, are encouraged to contact Kuehn Law. The firm states that there may be limited time for shareholders to enforce their rights. Participation in such investigations allows shareholders to contribute to the integrity and fairness of the financial markets.

Kuehn Law pays all case costs and does not charge its investor clients. Interested shareholders can reach Sophia Anne Silayan via email at sophiaanne@kuehn.law or by calling the firm directly. The law firm emphasizes that shareholder participation matters for maintaining market integrity.

Legal Context

The probe stems from a federal securities lawsuit that highlights specific governance and reporting issues. The core allegation involves the concealment of material weaknesses in internal controls, which are critical mechanisms designed to ensure accurate financial reporting. By allegedly hiding these weaknesses, management may have presented a distorted view of the company’s financial health to the market.

For additional information on shareholder derivative litigation, investors can visit the Kuehn Law website. The firm notes that prior results do not guarantee similar outcomes, as is standard in attorney advertising. Contact details for Justin Kuehn, Esq., are also available at the firm’s Southampton, New York office.

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.