Genesee County Employees’ Retirement System v. Driven Brands Holdings Inc.

BLB&G represents plaintiffs Genesse County Employees’ Retirement System, Oakland County Employees’ Retirement System, and Oakland County Voluntary Employees’ Beneficiary Association (collectively, “Lead Plaintiffs”) in this securities class action (the “Action”) brought on behalf of investors that purchased Driven Brands Holdings Inc. (“Driven” or “the Company”) common stock during the Class Period. The Action asserts claims against Driven and certain of its senior executives for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

Lead Plaintiffs Have Reached a Proposed Settlement of the Action for $25 Million

Lead Plaintiffs, on behalf of themselves and the Settlement Class (defined below), have reached a proposed settlement of the Action for $25,000,000 in cash that, if approved, will resolve all claims in the Action (the “Settlement”).

If you are a member of the Settlement Class, your rights will be affected and you may be eligible for a payment from the Settlement.  The Settlement Class consists of:

all persons and entities who purchased Driven common stock during the period from October 27, 2021 through August 1, 2023, inclusive (the “Class Period”).

Certain persons and entities are excluded from the Settlement Class by definition (see paragraph 20 of the Notice) or may request exclusion from the Settlement Class pursuant to the instructions set forth in the Notice (see paragraph 50 of the Notice).

Please read the Notice to fully understand your rights and options.  Copies of the Notice and Claim Form can be found in the Case Documents list on the right of this page.  You may also visit the Settlement website, www.DrivenBrandsSecuritiesLitigation.com, for more information about the Settlement.

To be eligible to receive a payment under the proposed Settlement, you must submit a Claim Form postmarked (if mailed) or submitted on-line by no later than July 6, 2026.

Payments to eligible claimants will be made only if the Court approves the Settlement and a plan of allocation, and only after any appeals are resolved, and after the completion of all claims processing.  Please be patient, as this process will take some time to complete.

IMPORTANT DATES AND DEADLINES

July 6, 2026	Claim Filing Deadline.  Claim Forms must be postmarked (if mailed) or submitted on-line no later than July 6, 2026.
May 11, 2026	Exclusion Deadline.  To exclude yourself from the Settlement Class, you must submit a written request for exclusion postmarked no later than May 11, 2026, in accordance with the instructions in the Notice.
May 11, 2026	Objection Deadline.  Any objections to the proposed Settlement, the proposed Plan of Allocation, or the motion for attorneys’ fees and expenses, must be submitted so they are received no later than May 11, 2026, in accordance with the instructions in the Notice.
June 1, 2026 at 9:45 a.m.	Settlement Hearing.  The Settlement Hearing will be held on June 1, 2026, at 9:45 a.m., before the Honorable Max O. Cogburn, Jr. of the United States District Court for the Western District of North Carolina, either in person at the United States Courthouse, Charles R. Jonas Federal Building, 401 West Trade Street, Charlotte, NC 28202, Courtroom 5A, or by telephone or videoconference, in the discretion of the Court.  The Settlement Hearing will be held by the Court to consider, among other things, whether the proposed Settlement is fair, reasonable, and adequate and should be approved; whether the proposed Plan of Allocation is fair and reasonable and should be approved; and whether Lead Counsel’s motion for attorneys’ fees and expenses should be approved.

Driven’s Alleged Fraud

At all relevant times, Driven was the largest automotive services company in North America. Through its portfolio of brands, Driven provided customers with a range of automotive needs, including paint, collision, glass, oil change, maintenance, and car wash. Those brands included, among others: Take 5 Oil Change®, Take 5 Car Wash®, Meineke Car Care Centers®, MAACO®, CARSTAR ®, 1-800-Radiator & A/C ®, and Auto Glass Now®. The Company operated through four reportable business segments: Maintenance; Car Wash; Paint, Collision and Glass; and Platform Services.

A core component of the Company’s growth strategy involved its acquisition and integration of existing businesses in the automotive services industry. Over the last several years, Driven expanded its operations to offer car washes and extended its reach in the auto glass market. In August 2020, Driven acquired International Car Wash Group, the world’s largest car wash company by location count. In late December 2021, Driven acquired Auto Glass Now, through which Driven expanded its auto glass business into the U.S. market. Through a series of subsequent acquisitions, Driven quickly became the second-largest auto glass repair business in North America.

The claims at issue arise from two categories of misrepresentations made by Defendants during the Class Period: (i) statements concerning Driven’s ability to efficiently and effectively integrate a high volume of acquired businesses, including statements related to the status of integrating its U.S. auto glass businesses; and (ii) statements concerning the performance and competitive position of Driven’s car wash business segment. Specifically, throughout the Class Period, defendants repeatedly touted Driven’s ability to execute and integrate acquisitions as a “core strength,” and assured investors that Driven had made “significant progress” integrating the auto glass businesses it had acquired. Driven also represented that the large scale of its car wash business served as a “competitive moat” that would preserve its competitive position.  While Driven acknowledged some “softness” in customer demand for its car wash business, it downplayed that issue and touted the growth of its car wash subscriptions, which Driven labeled as the “Holy Grail” in the car wash business.

In reality, Defendants had fallen several quarters behind on integrating its auto glass businesses; further, the Company’s car wash business faltered from exposure to greater decline in demand from retail customers than Defendants had represented to investors. As a result of Defendants’ misrepresentations that concealed this and other information contrary to their claims to investors, Driven stock traded at artificially inflated prices throughout the Class Period.

The truth began to emerge on October 26, 2022, when Driven announced delays in its glass business and poor car wash results. In response, Driven’s stock price fell from a close of $32.27 on October 25, 2022 to close at $29.96 on October 26, 2022, a decline of over 7%.

Then, 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. These disclosures caused the price of Driven common stock to decline by $10.63 per share, or 41%.

On August 13, 2024, Lead Plaintiffs filed an Amended Class Action Complaint. On October 14, 2024, Defendants filed a motion to dismiss the case. After full briefing, on February 20, 2025, the Court denied Defendants’ motion to dismiss in its entirety.