NEW YORK–(BUSINESS WIRE)–$DRVN #ClassActionLawsuit–The law firm of Kirby McInerney LLP alerts investors of the fast-approaching February 20, 2024 deadline to seek the role of lead plaintiff in a federal securities class action filed on behalf of those who acquired Driven Brands Holdings Inc. (“Driven” or the “Company”) (NASDAQ: DRVN) securities during the period from October 27, 2021 through August 1, 2023, inclusive. The firm encourages investors to contact the firm by February 20, 2024 to be appointed as lead plaintiff in the lawsuit.
On May 8, 2023, Driven revealed that, on May 4, 2023, the Company’s former Chief Financial Officer, Defendant Tiffany L. Mason, had abruptly left the Company under unusual circumstances. Mason’s exit came just one day after Driven reported its financial results for the first quarter of 2023.
On August 2, 2023, Driven reported earnings for the second quarter of 2023 that missed expectations, including disappointing results for its Paint, Collision and Glass business segment as well as its Car Wash segment. With respect to its auto glass business, the Company admitted that it was at least “several quarters” behind on its integration of the businesses it had acquired. In addition, regarding Driven’s Car Wash segment, the Company disclosed that increased exposure to “intensified competitive intrusion” negatively impacted demand from Driven’s high-margin retail car wash customers. As a result of delays in Driven’s integration of its acquired auto glass businesses and the faltering performance of its car wash businesses, the Company slashed its full-year earnings guidance for fiscal 2023, despite having reaffirmed that guidance a little over two months earlier. On this news, the price of Driven shares declined by $10.63 per share, or approximately 41.15%, from $25.83 per share to close at $15.20 on August 2, 2023.
The lawsuit alleges that, throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose that: (i) despite repeatedly touting the Company’s ability to execute and integrate acquisitions as a “core strength,” Driven had not made significant progress integrating the auto glass businesses it had acquired; (ii) the large scale of its car wash business was not enough to preserve Driven’s competitive position in the market; (iii) the severity of its issues with customer demand for its car wash business segment; (iv) the Company was several quarters behind on integrating its auto glass businesses; and (v) the Company’s car wash business was faltering and more exposed to a decline in demand from retail customers than Defendants represented to investors.
If you purchased or otherwise acquired Driven securities, have information, or would like to learn more about this investigation, please contact Thomas W. Elrod of Kirby McInerney LLP by email at [email protected], or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney LLP is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s website.
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