Driven Brands Holdings Inc., the parent company of collision repair networks CARSTAR, Fix Auto USA, and Abra, is now the subject of multiple federal securities fraud lawsuits following the accounting restatement the company disclosed in late February.
The lawsuits, filed in the U.S. District Court for the Southern District of New York under the case caption Clark v. Driven Brands Holdings Inc., No. 26-cv-01902, allege that the company and certain current and former executives violated federal securities laws by issuing financial statements that contained material errors over a period spanning fiscal years 2023 through the first three quarters of 2025.
Multiple law firms have filed or announced class action claims on behalf of investors who purchased Driven Brands common stock between May 9, 2023, and Feb. 24, 2026, according to filings posted on GlobeNewswire and PR Newswire. The deadline for investors to file lead plaintiff motions is May 8, 2026.
Claims center on two years of misstated financials
The claims center on the company's Feb. 25 disclosure that its audit committee had concluded previously issued financial statements for fiscal years 2023 and 2024, along with quarterly periods through September 2025, contained material errors and could no longer be relied upon, according to a Form 8-K filed with the Securities and Exchange Commission.
The SEC filing identified errors across multiple categories, including problems with how the company recorded leases, unreconciled cash accounts that overstated revenue, and misclassification of expenses. The company also acknowledged material weaknesses in its internal controls over financial reporting.
Driven Brands stock fell from $16.61 at the close on Feb. 24 to $9.99 at the open on Feb. 25, according to the lawsuit filings. The company has delayed the release of its fiscal year 2025 annual report and has indicated it may identify additional errors as its review continues.
Collision repair brands span approximately 4,900 locations
Driven Brands reported approximately 4,900 locations across the United States and 13 other countries as of its most recent quarterly earnings release. Its brands include collision repair and paint networks CARSTAR, Fix Auto USA, Abra, and Maaco, along with Auto Glass Now, Take 5 Oil Change, and Meineke.
The accounting issues are not specific to any single brand or operating unit within the company. The SEC filing describes errors at the consolidated financial statement level, affecting how the company reported leases, cash balances, revenue, and expenses across the organization.
Annual report delayed, review ongoing
The company has requested additional time to file its 2025 annual report with the SEC and has stated that its review of financial statements and internal controls is ongoing.
Investors with potential claims have until May 8, 2026, to seek appointment as lead plaintiff.
