Driven Brands ($DRVN) $25M Investor Settlement
Driven Brands has agreed to settle $25 million with $DRVN investors to resolve claims that it misled them about the integration of its auto glass acquisitions and exaggerated the stability of its car wash segment.
In 2023, Driven Brands lowered its full-year forecast after disclosing delays in the integration of its auto glass business and weaker-than-expected performance in its car wash segment. These disclosures contrasted with earlier statements in which the company had pointed to integration as a key strength of its growth strategy. Following the guidance cut, $DRVN shares fell by approximately 41%, and investors later filed a lawsuit against the company.
August 2020–December 2021: Driven acquired International Car Wash Group and Auto Glass Now to expand services.
2021–2023: The company repeatedly promoted its ability to integrate acquisitions and highlighted car wash growth.
May 4, 2023: CFO Tiffany Mason resigned one day after the Q1 earnings call.
August 2, 2023: Driven cut full-year guidance due to auto glass delays and car wash weakness; $DRVN dropped 41%.
December 22, 2023: Investors filed class action against Driven.
February 5, 2026: Driven agreed to a $25M settlement to resolve all claims.
Driven Brands Holdings, one of the largest automotive services company in North America, entered a period of rapid expansion following its 2020 public listing.
As part of this strategy, the company acquired International Car Wash Group in 2020 and Auto Glass Now in 2021, positioning the deals as key drivers of long-term growth.
Between 2021 and early 2023, Driven Brands repeatedly stated in earnings calls and investor presentations that these acquisitions were being integrated according to plan.
Management emphasized the company’s “proven integration playbook” and said the auto glass and car wash businesses were performing in line with expectations.
Later disclosures, however, showed that the integration of the U.S. auto glass business was taking longer than expected and had fallen several quarters behind internal timelines.
At the same time, the company reported weaker-than-expected traffic in its car wash segment, citing increased competition and slower customer retention in newer markets.
Concerns intensified on May 4, 2023, when Chief Financial Officer Tiffany Mason resigned one day after the company’s earnings call.
On August 2, 2023, Driven Brands cut its full-year financial guidance. The company cited delays in the auto glass integration and softer demand in the car wash business as key factors behind the revision.
Following this announcement, $DRVN fell sharply, declining by approximately 41%.
After these events, investors filed a lawsuit claiming that Driven Brands had misrepresented the progress of its auto glass integration and overstated the stability of its car wash operations.
Driven Brands has agreed to settle $25 million with $DRVN investors to resolve claims that it misled them about the integration of its auto glass acquisitions and exaggerated the stability of its car wash segment.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Frequently Asked Questions
All persons and entities who purchased or otherwise acquired Driven Brands Holdings ($DRVN) common stock between October 27, 2021 and August 1, 2023, inclusive, and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.85 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $3.4 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.