Bernstein Litowitz Berger & Grossmann LLP Announces Proposed Class Action Settlement on Behalf of Purchasers of Driven Brands Holdings Inc. Common Stock

Rhea-AI Summary

{"summary":"","positive":[],"negative":[],"faq":[]}

Key Figures

Settlement amount: $25,000,000 Class period start: October 27, 2021 Class period end: August 1, 2023 +3 more

6 metrics

Settlement amount $25,000,000 Proposed cash settlement of securities class action

Class period start October 27, 2021 Beginning of Settlement Class purchase period

Class period end August 1, 2023 End of Settlement Class purchase period

Settlement hearing date June 1, 2026 Court hearing on proposed settlement at 9:45 a.m.

Claim deadline July 6, 2026 Last date to submit Claim Form to participate in settlement

Exclusion/objection deadline May 11, 2026 Deadline to request exclusion or file objections

Market Reality Check

Price: $10.75 Vol: Volume 2,716,631 is close...

normal vol

$10.75 Last Close

Volume Volume 2,716,631 is close to the 20-day average of 2,809,948 (relative volume 0.97). normal

Technical Shares trade below the 200-day MA, with price at 10.47 versus MA(200) at 15.8 and well under the 19.74 52-week high.

Peers on Argus

DRVN was down 1.32% while several peers like SAH, CARG, KAR, and ABG showed gain...

DRVN was down 1.32% while several peers like SAH, CARG, KAR, and ABG showed gains and only RUSHA was slightly negative, indicating stock-specific pressure rather than a sector-wide move.

Historical Context

5 past events · Latest: Mar 12 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Mar 12	Fiduciary duty lawsuit	Negative	-0.6%	Allegations insiders breached fiduciary duties to shareholders.
Mar 12	Accounting errors lawsuit	Negative	-0.6%	Lawsuit alleging pervasive accounting errors and investor losses.
Feb 18	EV repair expansion	Positive	-0.3%	Expansion of certified repair capabilities for EV and luxury vehicles.
Feb 12	Earnings call notice	Neutral	-1.4%	Announcement of timing for Q4 and full-year 2025 earnings call.
Feb 09	Segment reporting change	Positive	+1.9%	New segment reporting after international car wash divestiture.

Pattern Detected

Recent headlines feature legal, accounting, and governance issues, with shares often weakening even on operational or neutral updates.

Recent Company History

Over the last few months, DRVN has faced multiple legal and reporting challenges. On Feb 25, 2026, it postponed Q4 and full-year results and filed an NT 10-K after identifying material weaknesses and the need to restate prior years. Separate lawsuit-focused headlines on Mar 12, 2026 also coincided with modest declines. Amid this, the company announced new segment reporting and expansion of certified repair capabilities, but those operational updates did not spark sustained strength. Today’s proposed class settlement fits into this broader cleanup of legal and disclosure issues.

Market Pulse Summary

This announcement details a proposed $25,000,000 securities class action settlement covering purchas...

Analysis

This announcement details a proposed $25,000,000 securities class action settlement covering purchases between October 27, 2021 and August 1, 2023, with a hearing set for June 1, 2026. It follows other legal and reporting challenges, including lawsuits and restatement-related SEC filings. Investors may track court approval of the settlement, participation levels before the July 6, 2026 claim deadline, and future disclosures on internal controls and financial reporting to gauge how fully past issues are being addressed.

Key Terms

class action, securities class action, section 10(b), section 20(a), +2 more

6 terms

class action regulatory

"SUMMARY NOTICE OF (I) PENDENCY OF CLASS ACTION AND PROPOSED SETTLEMENT"

A class action is a lawsuit where a group of people with similar complaints sue a company together instead of each person filing separately; think of it as a neighborhood banding together to take one case to court rather than everyone hiring separate lawyers. Investors care because class actions can lead to large settlements or judgments, damage a company’s reputation, drain cash reserves, and distract management — all of which can reduce a company’s stock value and affect future earnings.

securities class action regulatory

"that the above-captioned securities class action (the "Action") is pending"

A securities class action is a lawsuit brought by a group of investors who claim they lost money because a company or its executives made false or misleading statements about financial performance, risks, or business prospects. Think of it as many people pooling forces to challenge misleading information; it matters to investors because these cases can lead to large settlements or judgments, hurt a company’s reputation, drain cash, and cause share prices to fall or become more volatile.

section 10(b) regulatory

"misstatements violated Section 10(b) of the Securities Exchange Act of 1934"

Section 10(b) is a provision of U.S. securities law that outlaws deceptive or manipulative practices in buying or selling stocks and other securities. It matters to investors because it provides a legal foundation for holding people accountable when false or misleading statements, hidden facts, or market manipulation distort prices—like a rule that makes sure everyone plays fair in a marketplace, helping protect the value of investors’ holdings and confidence in the market.

section 20(a) regulatory

"in violation of Section 20(a) of the Exchange Act"

Section 20(a) is a U.S. securities law rule that can make a person or entity that has the power to control a company legally responsible for securities law violations committed by that company or its officers. Think of it like holding the captain of a ship partly responsible for the crew’s mistakes: investors can seek damages from both the company and those who exercised control, which affects how risks and potential recoveries are assessed.

federal securities laws regulatory

"violated federal securities laws. Lead Plaintiffs allege that Driven"

Federal securities laws are the set of national rules that require companies and market participants to provide accurate information, prohibit deceptive practices, and ensure fair trading of stocks and bonds. Think of them as the rules of the road for financial markets: they help investors make informed choices by mandating disclosures and punishing fraud, which reduces risk and builds trust in the safety and reliability of investments.

plan of allocation financial

"whether the proposed Plan of Allocation should be approved as fair"

A plan of allocation explains how money or securities from a settlement, offering, or corporate distribution will be divided among eligible recipients. It matters to investors because it shows who gets paid, how amounts are calculated, and what steps they must take to receive their share — like a recipe that turns a single pot of money into individual portions based on clear rules and proof of ownership.

AI-generated analysis. Not financial advice.

CHARLOTTE, N.C., March 20, 2026 /PRNewswire/ -- Bernstein Litowitz Berger & Grossmann LLP announces that the United States District Court for the Western District of North Carolina has approved the following announcement of a proposed class action settlement on behalf of purchasers of Driven Brands Holdings Inc. common stock (NASDAQ: DRVN):

UNITED STATES DISTRICT COURT
WESTERN DISTRICT OF NORTH CAROLINA
CHARLOTTE DIVISION

GENESEE COUNTY EMPLOYEES' RETIREMENT SYSTEM, on behalf of itself and all others similarly situated,   Plaintiffs,   v.   DRIVEN BRANDS HOLDINGS INC., JONATHAN G. FITZPATRICK, and TIFFANY L. MASON,   Defendants.

Case No. 3:23-cv-00895-MOC-DCK   Judge: Honorable Max O. Cogburn, Jr.

SUMMARY NOTICE OF (I) PENDENCY OF CLASS ACTION AND PROPOSED SETTLEMENT; (II) SETTLEMENT HEARING; AND (III) MOTION FOR ATTORNEYS' FEES AND LITIGATION EXPENSES

TO: All persons and entities who purchased the common stock of Driven Brands Holdings Inc. ("Driven" or the "Company") during the period from October 27, 2021 through August 1, 2023, inclusive (the "Class Period") (the "Settlement Class")¹:

PLEASE READ THIS NOTICE CAREFULLY.  YOUR RIGHTS WILL BE AFFECTED BY A CLASS ACTION LAWSUIT PENDING IN THIS COURT.

YOU ARE HEREBY NOTIFIED, pursuant to Rule 23 of the Federal Rules of Civil Procedure and an Order of the United States District Court for the Western District of North Carolina (the "Court"), that the above-captioned securities class action (the "Action") is pending in the Court.

YOU ARE ALSO NOTIFIED that Lead Plaintiffs Genesee County Employees' Retirement System, Oakland County Employees' Retirement System, and Oakland County Voluntary Employees' Beneficiary Association (together, "Lead Plaintiffs"), on behalf of themselves and the Settlement Class, have reached a proposed settlement of the Action for $25,000,000 in cash (the "Settlement").  If approved, the Settlement will resolve all claims in the Action.

The Action involves allegations that Driven and certain of its senior officers violated federal securities laws.  Lead Plaintiffs allege that Driven, its former Chief Executive Officer, Jonathan G. Fitzpatrick ("Fitzpatrick"), and its former Chief Financial Officer, Tiffany L. Mason ("Mason"), made material misrepresentations and omissions during the Class Period concerning: (a) Driven's efforts to create a nationwide auto-glass business by acquiring and integrating smaller companies into a single "platform"; and (b) operational execution and customer retention in Driven's car wash business.  Lead Plaintiffs alleged that Defendants' alleged misstatements violated Section 10(b) of the Securities Exchange Act of 1934 (the "Exchange Act"), and that Fitzpatrick and Mason controlled Driven when the misstatements were made, in violation of Section 20(a) of the Exchange Act.  Defendants^[2] deny all allegations in the Action and deny any violations of the federal securities laws.  Issues and defenses at issue in the Action included, among others: (i) whether Defendants made materially false statements or omissions; (ii) whether Defendants made the statements with the required state of mind; (iii) whether the alleged misstatements caused class members' losses; and (iv) the amount of damages, if any. 

A hearing will be held on June 1, 2026, at 9:45 a.m., before the Honorable Max O. Cogburn, Jr. of the United States District Court for the Western District of North Carolina, either in person at the United States Courthouse, Charles R. Jonas Federal Building, 401 West Trade Street, Charlotte, NC 28202, Courtroom 5A, or by telephone or videoconference, in the discretion of the Court, to determine: (i) whether the proposed Settlement should be approved as fair, reasonable, and adequate; (ii) whether, for purposes of the proposed Settlement only, the Action should be certified as a class action on behalf of the Settlement Class, Lead Plaintiffs should be certified as Class Representatives for the Settlement Class, and Lead Counsel Bernstein Litowitz Berger & Grossmann LLP should be appointed as Class Counsel for the Settlement Class; (iii) whether the Action should be dismissed with prejudice against Defendants, and the Releases specified and described in the Stipulation (and in the Notice) should be granted; (iv) whether the proposed Plan of Allocation should be approved as fair and reasonable; and (v) whether Lead Counsel's application for an award of attorneys' fees and expenses should be approved.

If you are a member of the Settlement Class, your rights will be affected by the pending Action and the Settlement, and you may be entitled to share in the Net Settlement Fund.  If you have not yet received the Notice and the Proof of Claim and Release Form ("Claim Form"), you may obtain copies of these documents by contacting the Claims Administrator at:  Driven Brands Securities Litigation, c/o Strategic Claims Services, P.O. Box 230, 600 N. Jackson St., Suite 205, Media, PA 19063; (855) 433-7863; info@DrivenBrandsSecuritiesLitigation.com.  Copies of the Notice and Claim Form can also be downloaded from the Settlement website, www.DrivenBrandsSecuritiesLitigation.com.

If you are a member of the Settlement Class, in order to be eligible to receive a payment from the Settlement, you must submit a Claim Form to the Claims Administrator postmarked (if mailed) or online by no later than July 6, 2026.  If you are a Settlement Class Member and do not submit a proper Claim Form, you will not be eligible to receive a payment from the Settlement, but you will nevertheless be bound by any judgments or orders entered by the Court in the Action.

If you are a member of the Settlement Class and wish to exclude yourself from the Settlement Class, you must submit a request for exclusion to the Claims Administrator such that it is received no later than May 11, 2026, in accordance with the instructions set forth in the Notice.  If you properly exclude yourself from the Settlement Class, you will not be bound by any judgments or orders entered by the Court in the Action and you will not be eligible to receive a payment from the Settlement.

Any objections to the proposed Settlement, the proposed Plan of Allocation, or Lead Counsel's motion for attorneys' fees and expenses must be filed with the Court and delivered to Lead Counsel and Defendants' Counsel such that they are received no later than May 11, 2026, in accordance with the instructions set forth in the Notice.

Please do not contact the Court, the Office of the Clerk of the Court, Defendants, or their counsel regarding this notice.  All questions about this notice, the proposed Settlement, or your eligibility to participate in the Settlement should be directed to the Claims Administrator or Lead Counsel.

Requests for the Notice and Claim Form should be made to:

Driven Brands Securities Litigation
c/o Strategic Claims Services
P.O. Box 230
600 N. Jackson Street, Suite 205
Media, PA 19063

(855) 433-7863
info@DrivenBrandsSecuritiesLitigation.com 
www.DrivenBrandsSecuritiesLitigation.com 

Inquiries, other than requests for the Notice and Claim Form, should be made to Lead Counsel:

Jonathan D. Uslaner
Bernstein Litowitz Berger & Grossmann LLP
2121 Avenue of the Stars, Suite 2575
Los Angeles, CA 90067

(800) 380-8496
settlements@blbglaw.com 

By Order of the Court

¹ Certain persons and entities are excluded from the Settlement Class by definition, as set forth in the full Notice of (I) Pendency of Class Action and Proposed Settlement; (II) Settlement Hearing; and (III) Motion for Attorneys' Fees and Litigation Expenses (the "Notice"), available at www.DrivenBrandsSecuritiesLitigation.com.

² Capitalized terms not otherwise defined herein shall have the same meaning as in the Stipulation and Agreement of Settlement, dated December 19, 2025 (the "Stipulation").  The Stipulation can be viewed and/or obtained at www.DrivenBrandsSecuritiesLitigation.com.

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SOURCE Bernstein Litowitz Berger & Grossmann LLP