NEW YORK, Dec. 26, 2023 (GLOBE NEWSWIRE) -- Bernstein Liebhard LLP:
- Do you, or did you, own shares of Driven Brands Holdings Inc. (NASDAQ: DRVN)?
- Did you purchase your shares between October 27, 2021 and August 1, 2023, inclusive?
- Did you lose money in your investment in Driven Brands Holdings, Inc.?
- Do you want to discuss your rights?
Bernstein Liebhard LLP announces that a securities class action lawsuit has been filed on behalf of investors who purchased or acquired the common stock of Driven Brands Holdings Inc. (“Driven” or the “Company”) (NASDAQ: DRVN) between October 27, 2021 and August 1, 2023, inclusive (the “Class Period”). The lawsuit was filed in the United States District Court for the Western District of North Carolina and alleges violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you purchased or acquired Driven common stock, and/or would like to discuss your legal rights and options please visit Driven Brands Holdings Inc. Shareholder Class Action Lawsuit or contact paralegal Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
According to the Complaint, Driven is the largest automotive services company in North America, providing customers with a range of automotive needs, including paint, collision, glass, oil change, maintenance, and car wash. Driven is the holding company of a portfolio of brands that compete across the automotive services industry. Those brands include Take 5 Oil Change®, Take 5 Car Wash®, Meineke Car Care Centers®, MAACO®, CARSTAR ®, and 1-800-Radiator & A/C ®, and Auto Glass Now®, among others. The Company conducts its operations through four reportable segments: Maintenance; Car Wash; Paint, Collision and Glass; and Platform Services.
Throughout the Class Period, Driven repeatedly touted its ability to execute and integrate acquisitions as a “core strength,” and assured investors that it had made “significant progress” integrating the auto glass businesses it had acquired. The Company also represented that the large scale of its car wash business served as a “competitive moat” that would preserve Driven’s competitive position. While Driven acknowledged some “softness” in customer demand for its car wash business segment, the Company downplayed that issue and pointed investors to the growth of its car wash subscriptions, which Driven labeled as the “Holy Grail” in the car wash business. Significantly, Driven provided assurances to investors that “nothing whatsoever concerns us” regarding its car wash business.
The truth began to emerge on May 8, 2023, when Driven announced that Driven’s Chief Financial Officer, Defendant Tiffany L. Mason, had abruptly left the Company, 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 both its Paint, Collision and Glass and Car Wash business segments. The Company also slashed its earnings guidance for fiscal 2023. Driven attributed its earnings miss and guidance cut to delays in the integration of its acquired auto glass businesses and increased exposure to “intensified competitive intrusion” in its Car Wash segment, which negatively impacted consumer demand and the Company’s margins. These disclosures caused the price of Driven common stock to decline by $10.63 per share, or 41%.
On this news, the Company’s share price fell $10.63, or over 41%, to close at $15.20 per share on August 2, 2023.
If you wish to serve as lead plaintiff, you must move the Court no later than February 20, 2024. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Your ability to share in any recovery doesn’t require that you serve as lead plaintiff. If you choose to take no action, you may remain an absent class member.
If you purchased or acquired Driven common stock, and/or would like to discuss your legal rights and options please visit Driven Brands Holdings Inc. Shareholder Class Action Lawsuit or contact paralegal Peter Allocco at (212) 951-2030 or pallocco@bernlieb.com.
Since 1993, Bernstein Liebhard LLP has recovered over $3.5 billion for its clients. In addition to representing individual investors, the Firm has been retained by some of the largest public and private pension funds in the country to monitor their assets and pursue litigation on their behalf. As a result of its success litigating hundreds of lawsuits and class actions, the Firm has been named to The National Law Journal’s “Plaintiffs’ Hot List” thirteen times and listed in The Legal 500 for sixteen consecutive years.
ATTORNEY ADVERTISING. © 2023 Bernstein Liebhard LLP. The law firm responsible for this advertisement is Bernstein Liebhard LLP, 10 East 40th Street, New York, New York 10016, (212) 779-1414. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
Contact Information:
Peter Allocco
Paralegal
Bernstein Liebhard LLP
https://www.bernlieb.com
(212) 951-2030
pallocco@bernlieb.com
