{"success":true,"data":{"pressRelease":{"id":"4858","rtpr_id":"nPn73ZpCya","ticker":"DRVN","exchange":"NASDAQ","all_tickers":["DRVN"],"title":"DRVN Investor Alert: Driven Brands Holdings Inc. Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After CFO Allegedly Signed Misstated Financials: Levi & Korsinsky","author":"PR Newswire","published_at":"2026-04-22T13:00:23.576Z","article_body":"DRVN Investor Alert: Driven Brands Holdings Inc. Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After CFO Allegedly Signed Misstated Financials: Levi & Korsinsky\n\nPR Newswire\n\nNEW YORK, April 22, 2026\n\nExecutive Accountability: Michael F. Diamond Named in Securities Action\n\nNEW YORK, April 22, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies\ninvestors that Michael F. Diamond, Chief Financial Officer of Driven Brands\nHoldings Inc. (NASDAQ: DRVN), is named as an individual defendant in a\nsecurities class action filed on behalf of shareholders who purchased DRVN\nsecurities between May 9, 2023, and February 24, 2026. Find out if you can\nrecover losses tied to executive misconduct\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4669914-11&h=1255306495&u=https%3A%2F%2Fzlk.com%2Fpslra-1%2Fdriven-brands-holdings-inc-lawsuit-submission-form-2%3Fprid%3D184319%26wire%3D4&a=Find+out+if+you+can+recover+losses+tied+to+executive+misconduct)\n or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com\n(mailto:jlevi@levikorsinsky.com)  or (212) 363-7500.\n\n(https://mma.prnewswire.com/media/2280334/Levi_and_Korsinsky_Logo.html)\n\nDriven Brands shares plummeted nearly 40%, losing $6.62 per share, after the\nCompany disclosed on February 25, 2026, that nearly three years of financial\nstatements required restatement due to material errors spanning ten\ncategories. The lead plaintiff deadline is May 8, 2026.\n\nMichael F. Diamond's Role During the Class Period\n\nDiamond assumed the role of Chief Financial Officer on August 9, 2024, making\nhim the Company's top finance executive during a critical stretch of the Class\nPeriod. The action contends that Diamond bore direct responsibility for the\naccuracy of financial disclosures filed under his watch, including:\n\n * The Q3 2024 10-Q filed November 7, 2024, reporting approximately $592 million\nin quarterly net revenue and $249 million in cash balances now subject to\nrestatement\n * The fiscal year 2024 10-K filed February 26, 2025, reporting $2.34 billion in\nannual net revenue and claiming a 2% year-over-year increase\n * The Q1 2025 10-Q filed May 8, 2025, reporting approximately $516.2 million in\nquarterly revenue\nDiamond co-signed each of these filings alongside the Company's CEO, the\ncomplaint identifies.\n\nDiamond's Expanded Accounting Oversight\n\nFollowing the resignation of Chief Accounting Officer Michael Beland in\nJanuary 2025, Diamond assumed the additional role of interim principal\naccounting officer. The pleading asserts that this dual responsibility placed\nDiamond at the center of both the Company's financial reporting and its\naccounting controls during a period when an unreconciled cash balance\noriginating in 2023 was allegedly causing revenue to be overstated and\noperating expenses to be understated across multiple reporting periods.\n\nDiamond held the interim accounting role until Rebecca Fondell assumed that\nposition in May 2025.\n\nDiamond's Certifications and Liability\n\nAs CFO, Diamond signed Sarbanes-Oxley certifications under Sections 302 and\n906 attesting that the Company's financial statements fairly presented its\nfinancial condition and that disclosure controls were effective. The\nsecurities action charges that these certifications were materially false\ngiven the ten categories of errors later identified by the Audit Committee.\n\nAs averred in the complaint, Diamond possessed the power and authority to\ncontrol the content and form of the Company's SEC filings, and had access to\nmaterial non-public information regarding the true state of the Company's\nfinancial reporting.\n\nSection 20(a) Context for Michael F. Diamond\n\nThe action asserts claims under Section 20(a) of the Exchange Act, which holds\ncontrolling persons jointly and severally liable for primary violations of the\nsecurities laws. The complaint charges that Diamond, by virtue of his senior\nposition, stock ownership, and participation in the preparation of the\nCompany's public filings, acted as a controlling person of Driven Brands.\n\n\"Individual officers who sign SEC certifications bear personal responsibility\nfor the accuracy of corporate disclosures. When a company is forced to restate\nnearly three years of financial statements across ten error categories,\nquestions about executive accountability are unavoidable.\" -- Joseph E. Levi,\nEsq.\n\nLEAD PLAINTIFF DEADLINE: May 8, 2026\n\nSubmit your claim to join the Driven Brands recovery\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4669914-11&h=33570672&u=https%3A%2F%2Fzlk.com%2Fpslra-1%2Fdriven-brands-holdings-inc-lawsuit-submission-form-2%3Fprid%3D184319%26wire%3D4&a=Submit+your+claim+to+join+the+Driven+Brands+recovery)\n or call Joseph E. Levi, Esq. at (212) 363-7500.\n\nLevi & Korsinsky, LLP, Top 50 securities litigation firm (ISS, seven\nconsecutive years). Over 70 professionals. Hundreds of millions recovered for\ninvestors.\n\nCONTACT:\nLevi & Korsinsky, LLP\nJoseph E. Levi, Esq.\nEd Korsinsky, Esq.\n33 Whitehall Street, 27th Floor\nNew York, NY 10004\njlevi@levikorsinsky.com (mailto:jlevi@levikorsinsky.com)\nTel: (212) 363-7500\nFax: (212) 363-7171\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/drvn-investor-alert-driven-brands-holdings-inc-securities-fraud-lawsuit---investors-with-losses-may-seek-to-lead-the-class-action-after-cfo-allegedly-signed-misstated-financials-levi--korsinsky-302749805.html\n(https://www.prnewswire.com/news-releases/drvn-investor-alert-driven-brands-holdings-inc-securities-fraud-lawsuit---investors-with-losses-may-seek-to-lead-the-class-action-after-cfo-allegedly-signed-misstated-financials-levi--korsinsky-302749805.html)\n\nSOURCE Levi & Korsinsky, LLP\n\n\n\nPhoto: \nhttps://mma.prnewswire.com/media/2280334/Levi_and_Korsinsky_Logo.jpg\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn73ZpCya","title":"DRVN Investor Alert: Driven Brands Holdings Inc. Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After CFO Allegedly Signed Misstated Financials: Levi & Korsinsky","author":"PR Newswire","ticker":"DRVN","created":"2026-04-22T13:00:23.576Z","tickers":["DRVN"],"exchange":"NASDAQ","article_body":"DRVN Investor Alert: Driven Brands Holdings Inc. Securities Fraud Lawsuit - Investors With Losses May Seek to Lead the Class Action After CFO Allegedly Signed Misstated Financials: Levi & Korsinsky\n\nPR Newswire\n\nNEW YORK, April 22, 2026\n\nExecutive Accountability: Michael F. Diamond Named in Securities Action\n\nNEW YORK, April 22, 2026 /PRNewswire/ -- Levi & Korsinsky, LLP notifies\ninvestors that Michael F. Diamond, Chief Financial Officer of Driven Brands\nHoldings Inc. (NASDAQ: DRVN), is named as an individual defendant in a\nsecurities class action filed on behalf of shareholders who purchased DRVN\nsecurities between May 9, 2023, and February 24, 2026. Find out if you can\nrecover losses tied to executive misconduct\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4669914-11&h=1255306495&u=https%3A%2F%2Fzlk.com%2Fpslra-1%2Fdriven-brands-holdings-inc-lawsuit-submission-form-2%3Fprid%3D184319%26wire%3D4&a=Find+out+if+you+can+recover+losses+tied+to+executive+misconduct)\n or contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com\n(mailto:jlevi@levikorsinsky.com)  or (212) 363-7500.\n\n(https://mma.prnewswire.com/media/2280334/Levi_and_Korsinsky_Logo.html)\n\nDriven Brands shares plummeted nearly 40%, losing $6.62 per share, after the\nCompany disclosed on February 25, 2026, that nearly three years of financial\nstatements required restatement due to material errors spanning ten\ncategories. The lead plaintiff deadline is May 8, 2026.\n\nMichael F. Diamond's Role During the Class Period\n\nDiamond assumed the role of Chief Financial Officer on August 9, 2024, making\nhim the Company's top finance executive during a critical stretch of the Class\nPeriod. The action contends that Diamond bore direct responsibility for the\naccuracy of financial disclosures filed under his watch, including:\n\n * The Q3 2024 10-Q filed November 7, 2024, reporting approximately $592 million\nin quarterly net revenue and $249 million in cash balances now subject to\nrestatement\n * The fiscal year 2024 10-K filed February 26, 2025, reporting $2.34 billion in\nannual net revenue and claiming a 2% year-over-year increase\n * The Q1 2025 10-Q filed May 8, 2025, reporting approximately $516.2 million in\nquarterly revenue\nDiamond co-signed each of these filings alongside the Company's CEO, the\ncomplaint identifies.\n\nDiamond's Expanded Accounting Oversight\n\nFollowing the resignation of Chief Accounting Officer Michael Beland in\nJanuary 2025, Diamond assumed the additional role of interim principal\naccounting officer. The pleading asserts that this dual responsibility placed\nDiamond at the center of both the Company's financial reporting and its\naccounting controls during a period when an unreconciled cash balance\noriginating in 2023 was allegedly causing revenue to be overstated and\noperating expenses to be understated across multiple reporting periods.\n\nDiamond held the interim accounting role until Rebecca Fondell assumed that\nposition in May 2025.\n\nDiamond's Certifications and Liability\n\nAs CFO, Diamond signed Sarbanes-Oxley certifications under Sections 302 and\n906 attesting that the Company's financial statements fairly presented its\nfinancial condition and that disclosure controls were effective. The\nsecurities action charges that these certifications were materially false\ngiven the ten categories of errors later identified by the Audit Committee.\n\nAs averred in the complaint, Diamond possessed the power and authority to\ncontrol the content and form of the Company's SEC filings, and had access to\nmaterial non-public information regarding the true state of the Company's\nfinancial reporting.\n\nSection 20(a) Context for Michael F. Diamond\n\nThe action asserts claims under Section 20(a) of the Exchange Act, which holds\ncontrolling persons jointly and severally liable for primary violations of the\nsecurities laws. The complaint charges that Diamond, by virtue of his senior\nposition, stock ownership, and participation in the preparation of the\nCompany's public filings, acted as a controlling person of Driven Brands.\n\n\"Individual officers who sign SEC certifications bear personal responsibility\nfor the accuracy of corporate disclosures. When a company is forced to restate\nnearly three years of financial statements across ten error categories,\nquestions about executive accountability are unavoidable.\" -- Joseph E. Levi,\nEsq.\n\nLEAD PLAINTIFF DEADLINE: May 8, 2026\n\nSubmit your claim to join the Driven Brands recovery\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4669914-11&h=33570672&u=https%3A%2F%2Fzlk.com%2Fpslra-1%2Fdriven-brands-holdings-inc-lawsuit-submission-form-2%3Fprid%3D184319%26wire%3D4&a=Submit+your+claim+to+join+the+Driven+Brands+recovery)\n or call Joseph E. Levi, Esq. at (212) 363-7500.\n\nLevi & Korsinsky, LLP, Top 50 securities litigation firm (ISS, seven\nconsecutive years). Over 70 professionals. Hundreds of millions recovered for\ninvestors.\n\nCONTACT:\nLevi & Korsinsky, LLP\nJoseph E. Levi, Esq.\nEd Korsinsky, Esq.\n33 Whitehall Street, 27th Floor\nNew York, NY 10004\njlevi@levikorsinsky.com (mailto:jlevi@levikorsinsky.com)\nTel: (212) 363-7500\nFax: (212) 363-7171\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/drvn-investor-alert-driven-brands-holdings-inc-securities-fraud-lawsuit---investors-with-losses-may-seek-to-lead-the-class-action-after-cfo-allegedly-signed-misstated-financials-levi--korsinsky-302749805.html\n(https://www.prnewswire.com/news-releases/drvn-investor-alert-driven-brands-holdings-inc-securities-fraud-lawsuit---investors-with-losses-may-seek-to-lead-the-class-action-after-cfo-allegedly-signed-misstated-financials-levi--korsinsky-302749805.html)\n\nSOURCE Levi & Korsinsky, LLP\n\n\n\nPhoto: \nhttps://mma.prnewswire.com/media/2280334/Levi_and_Korsinsky_Logo.jpg\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-04-22T13:00:23.643946297Z","server_sent_at_ms":1776862823643},"received_at":"2026-04-22T13:00:23.712Z","source_url":null},"analysis":{"id":"3464","press_release_id":"4858","analysis_json":{"industry":{"label":"Consumer Services","sector":"Consumer Discretionary"},"redFlags":["Shares plummeted nearly 40% ($6.62) on restatement news","CFO named as individual defendant in securities fraud lawsuit","Financials require restatement for nearly three years across ten error categories","Unreconciled cash balance allegedly caused revenue overstatement and expense understatement"],"eventType":"legal_litigation","narrative":"Levi & Korsinsky announced a securities class action against Driven Brands and CFO Michael F. Diamond, alleging the executive signed misstated financials.\n\nThe lawsuit follows a nearly 40% stock drop after the company disclosed a need to restate nearly three years of financial statements across ten error categories.\n\nDiamond is accused of signing erroneous 10-Q and 10-K filings, including reports of $2.34B in annual revenue and $249M in cash, while acting as CFO and interim principal accounting officer.","sentiment":"bearish","agentHooks":{"shouldPost":true,"suggestedAngle":"CFO faces personal liability as DRVN stock crashes 40% on massive restatement news."},"keyFigures":{"customDimensions":{"error_categories":"ten","stock_drop_amount":"$6.62 per share","restatement_period":"nearly three years","stock_drop_percent":"nearly 40%","alleged_q3_2024_cash":"$249 million","alleged_fy_2024_revenue":"$2.34 billion","alleged_q1_2025_revenue":"$516.2 million","alleged_q3_2024_revenue":"$592 million","alleged_fy_2024_yoy_increase":"2%"}},"quotedText":"Individual officers who sign SEC certifications bear personal responsibility for the accuracy of corporate disclosures. When a company is forced to restate nearly three years of financial statements across ten error categories, questions about executive accountability are unavoidable.","namedEntities":{"people":[{"name":"Michael F. Diamond","role":"CFO"},{"name":"Joseph E. Levi","role":"Esq."},{"name":"Ed Korsinsky","role":"Esq."},{"name":"Michael Beland","role":"Chief Accounting Officer"},{"name":"Rebecca Fondell","role":"Principal Accounting Officer"}],"products":[],"companies":[{"name":"Driven Brands Holdings Inc.","ticker":"DRVN","relationship":"defendant"},{"name":"Levi & Korsinsky, LLP","relationship":"plaintiff counsel"}],"dollarAmounts":[{"amount":"$6.62 per share","context":"share price loss"},{"amount":"$592 million","context":"Q3 2024 quarterly net revenue (subject to restatement)"},{"amount":"$249 million","context":"Q3 2024 cash balances (subject to restatement)"},{"amount":"$2.34 billion","context":"fiscal year 2024 annual net revenue (subject to restatement)"},{"amount":"$516.2 million","context":"Q1 2025 quarterly revenue (subject to restatement)"}]},"materialImpact":{"score":5,"reasoning":"Shares plummeted nearly 40% following the disclosure of a three-year financial restatement due to material errors; the CFO has been named as an individual defendant in a securities fraud lawsuit."},"tickerRelevance":{"others":[],"primary":"DRVN"},"eventTypeSecondary":[]},"event_type":"legal_litigation","event_type_secondary":null,"sentiment":"bearish","material_impact_score":5,"narrative":"Levi & Korsinsky announced a securities class action against Driven Brands and CFO Michael F. Diamond, alleging the executive signed misstated financials.\n\nThe lawsuit follows a nearly 40% stock drop after the company disclosed a need to restate nearly three years of financial statements across ten error categories.\n\nDiamond is accused of signing erroneous 10-Q and 10-K filings, including reports of $2.34B in annual revenue and $249M in cash, while acting as CFO and interim principal accounting officer.","key_figures":{"customDimensions":{"error_categories":"ten","stock_drop_amount":"$6.62 per share","restatement_period":"nearly three years","stock_drop_percent":"nearly 40%","alleged_q3_2024_cash":"$249 million","alleged_fy_2024_revenue":"$2.34 billion","alleged_q1_2025_revenue":"$516.2 million","alleged_q3_2024_revenue":"$592 million","alleged_fy_2024_yoy_increase":"2%"}},"named_entities":{"people":[{"name":"Michael F. Diamond","role":"CFO"},{"name":"Joseph E. Levi","role":"Esq."},{"name":"Ed Korsinsky","role":"Esq."},{"name":"Michael Beland","role":"Chief Accounting Officer"},{"name":"Rebecca Fondell","role":"Principal Accounting Officer"}],"products":[],"companies":[{"name":"Driven Brands Holdings Inc.","ticker":"DRVN","relationship":"defendant"},{"name":"Levi & Korsinsky, LLP","relationship":"plaintiff counsel"}],"dollarAmounts":[{"amount":"$6.62 per share","context":"share price loss"},{"amount":"$592 million","context":"Q3 2024 quarterly net revenue (subject to restatement)"},{"amount":"$249 million","context":"Q3 2024 cash balances (subject to restatement)"},{"amount":"$2.34 billion","context":"fiscal year 2024 annual net revenue (subject to restatement)"},{"amount":"$516.2 million","context":"Q1 2025 quarterly revenue (subject to restatement)"}]},"model_name":"glm-4.7","prompt_hash":"sha256:2f2748f0fcc8c4f2","schema_hash":"sha256:ad96b863d7123008","created_at":"2026-04-22T17:23:48.913Z","global_importance":3,"audience_relevance":3,"importance_components":{"method":"backfill-heuristic","signals":{"bodyLong":false,"headlineTier1":false,"tickerCovered":false,"hadSignificance":false},"version":1,"computedAt":"2026-04-27T11:52:54.215Z"}},"durationMs":43490,"modelName":"glm-4.7"}}