Kaskela Law LLC announces that it is investigating Driven Brands Holdings Inc. (NASDAQ: DRVN) (“Driven”) on behalf of the company’s long-term investors.
https://kaskelalaw.com/case/driven-brands-holdings/
Recently a securities fraud complaint was filed against Driven on behalf of investors who purchased shares of the company’s stock between October 27, 2021 and August 1, 2023. According to the complaint, during that time period Driven and certain of the company’s senior executive officers made a series of materially false and misleading statements, and omitted to disclose material adverse information, concerning the Company’s two most important growth initiatives: (i) the creation of a nationwide auto-glass business by rapidly acquiring and integrating smaller companies into a single “platform,” and (ii) operational execution and customer retention in the Company’s critical car wash business. Specifically, the defendants are alleged to have “repeatedly assured investors that the Company was executing on both of these key growth strategies and, as such, reaffirmed highly positive earnings growth projections.”
As detailed in the complaint, on August 2, 2023, Driven was forced to slash its guidance by an astonishing 24% and admit that, far from making “significant progress” in integrating its auto-glass network, the company’s integration was actually “several quarters behind” and, as a result, the Company would have to shrink the scope of its auto-glass network by a third. In addition, Driven finally disclosed substantially declining same store car wash sales driven by “significant competitive . . . growth.” Indeed, just a few weeks later, Driven would write-down its car wash segment by nearly $1 billion, equal to more than 10% of Driven’s entire asset value as of the end of 2022.
Following this news, shares of Driven’s stock fell $10.63 per share, or over 41% in value, to close on August 2, 2023 at $15.20 per share, on unusually heavy trading volume.
The investigation seeks to determine whether the members of Driven’s board of directors violated the securities laws and/or breached their fiduciary duties in connection with the above alleged misconduct.
Driven shareholders who purchased or acquired their currently held shares of DRVN stock prior to August 1, 2023 are encouraged to contact Kaskela Law LLC (D. Seamus Kaskela, Esq. or Adrienne Bell, Esq.) at (484) 229 – 0750 for additional information about this investigation and their legal rights and options. Alternatively, investors may submit their information to the firm by clicking on the following link (or by copying and pasting the link into your browser):
https://kaskelalaw.com/case/driven-brands-holdings/
Kaskela Law LLC exclusively represents investors in securities fraud, corporate governance, and merger & acquisition litigation on a contingent basis. For additional information about Kaskela Law LLC please visit www.kaskelalaw.com.
This notice may constitute attorney advertising in certain jurisdictions.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240919895123/en/
Contacts
KASKELA LAW LLC
D. Seamus Kaskela, Esq.
(skaskela@kaskelalaw.com)
Adrienne Bell, Esq.
(abell@kaskelalaw.com)
18 Campus Blvd., Suite 100
Newtown Square, PA 19073
(888) 715 – 1740
(484) 229 – 0750
www.kaskelalaw.com
