Hagens Berman Updates Driven Brands (DRVN) Investors: New Nasdaq Non-Compliance Notice and Internal Review Delays Amid Securities Class Action
SAN FRANCISCO, April 22, 2026 (GLOBE NEWSWIRE) -- Hagens Berman, a global shareholder rights law firm, today issues an update to investors in Driven Brands Holdings Inc. (NASDAQ: DRVN) following the company’s April 21 admission that it is unable to file its required financial reports and has received a notice of non-compliance from Nasdaq.
The disclosures are pertinent to legal claims asserted in a securities class action against Driven Brands alleging violated the federal securities laws. The firm encourages investors with substantial losses to submit your losses to Hagens Berman now before the May 8, 2026 Lead Plaintiff Deadline.
The April 21, 2026 Disclosures: Potential Delisting and Additional Filing Delay
Driven Brands revealed that it received a deficiency notice from Nasdaq on April 15, 2026, due to its failure to timely file its Annual Report (Form 10-K) for fiscal year 2025 and its Quarterly Report (Form 10-Q) for Q1 2026. The company admitted that its internal review of “material weaknesses” in financial reporting—first disclosed in February—remains ongoing and that its previous financial statements cannot be relied upon.
Furthermore, the company provided preliminary unaudited results that reflected a downward revision of its prior guidance and said that it no longer expects to meet the April 26, 2026 date, which the company set during March, for filing its Form 10-K. Instead, the company said it expects to file on or before June 15, 2026 (the deadline to submit a plan to regain listing compliance).
Driven Brands (DRVN) Securities Class Action Details
Expanded Class Period: May 3, 2023 – Feb. 24, 2026
Lead Plaintiff Deadline: May 8, 2026
Visit: www.hbsslaw.com/investor-fraud/drvn
Contact the Firm Now: DRVN@hbsslaw.com
844-916-0895
These latest developments are occurring amidst a federal securities class action filed against Driven Brands and certain of its executives. The litigation alleges that the defendants misrepresented the effectiveness of their internal controls while concealing financial errors, including unreconciled cash balances and lease accounting inaccuracies.
The truth began to emerge before the markets opened on February 25, 2026. That day, Driven Brands admitted that its previously filed financial statements were materially misstated, should no longer be relied upon, and would be restated. The company cited improper accounting in lease adjustments, cash adjustments, expense classification, and other matters that included inappropriately recognized revenue.
Then, after hours on February 26, 2026, the company announced that it would not timely file its annual report for the year ended December 27, 2025 as a result of the pending restatements and revealed its internal control over financial reporting was not effective and materially weak.
“The fact that Driven Brands still cannot file its 10-K and is now facing potential delisting potentially foreshadows the severity of the alleged internal control failures,” said Reed Kathrein, the Hagens Berman partner leading the firm’s investigation of the claims alleged in the pending suits.
If you invested in Driven Brands and have substantial losses, or have knowledge that will assist the firm’s investigation, report your losses now.
View our latest video summary of the allegations: www.youtube.com/watch?v=EwsGKJAAbdM&t=2s
If you’d like more information and answers to additional frequently asked questions about the Driven case and the firm’s investigation, read more »
Whistleblowers: Persons with non-public information regarding Driven should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email DRVN@hbslaw.com.
About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895