Driven Brands $25M Securities Class Action Settlement, Did You Lose Money on DRVN Stock?

Driven Brands Holdings Inc. and two former executives agreed to pay $25 million to settle a federal securities class action lawsuit alleging they misled investors about the company’s auto-glass expansion and car wash business performance. If you purchased Driven Brands (NASDAQ: DRVN) common stock between October 27, 2021, and August 1, 2023, you may qualify for a cash payment. You must file a claim to receive any money. The claim deadline is July 6, 2026.

Quick Facts

Current Status and What Happens Next

• Proposed settlement — the court has not yet granted final approval. The settlement is currently open for claims while the court review process continues.
• Opt-out deadline: May 11, 2026 — investors who want to preserve their right to sue Driven Brands independently must exclude themselves before this date.
• Final approval hearing: June 1, 2026 — the court will decide whether to approve the settlement. Claim payments go out after final approval and the resolution of any appeals, with a claim filing window that stays open until July 6, 2026.

What Is the Driven Brands Lawsuit About?

Plaintiff Genesee County Employees’ Retirement System filed the securities class action lawsuit against Driven Brands Holdings Inc. and former executives Jonathan G. Fitzpatrick (former CEO) and Tiffany L. Mason (former CFO) in the U.S. District Court for the Western District of North Carolina (Case No. 3:23-cv-00895-MOC-DCK). The lawsuit alleged these defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making false and misleading statements that artificially inflated DRVN’s stock price.

Driven Brands operates well-known automotive service brands including Meineke, Maaco, Take 5 Oil Change, and International Car Wash Group. The lawsuit focused on two specific areas of alleged misrepresentation: the company’s efforts to build a nationwide auto-glass business and the operational performance and customer retention of its car wash segment. Plaintiffs argued these misleading statements caused DRVN investors to buy stock at inflated prices, suffering losses when the truth about the company’s actual performance emerged.

Driven Brands, Fitzpatrick, and Mason denied all allegations of wrongdoing. All three defendants agreed to the $25 million settlement to avoid the cost and uncertainty of continued litigation.

Who Is Eligible to File a Claim?

The settlement class covers all persons and entities who purchased or acquired Driven Brands Holdings Inc. common stock (ticker: DRVN, CUSIP: 26210V102) during the class period.

• You may qualify if you purchased or acquired DRVN common stock between October 27, 2021, and August 1, 2023, inclusive.
• You may qualify if you are an individual investor, a retirement fund, pension fund, or institutional investor — both individuals and entities are eligible.
• You may qualify if you manage a separately managed account — but each separate account must submit its own individual claim form.
• You may qualify if you are an agent, executor, trustee, or guardian filing on behalf of another eligible investor, provided you submit proof of your authority.
• You do not qualify if your only recognized loss calculates to $0 — for example, if you sold all your DRVN shares before the close of trading on October 25, 2022.
• You do not qualify if your calculated payment would be less than $10 — the settlement administrator will not issue payments below this threshold.
• You do not qualify if you are a current or former director or officer of Driven Brands, or a defendant in this case.

If you held DRVN in an employer retirement plan covered by ERISA, do not file an individual claim — your plan trustee must file on behalf of all plan participants.

Related article: $8.14M Cincinnati Protest Settlement, Were You Arrested in 2020?

How Much Can You Receive?

Your payment depends on how many shares you held, when you bought and sold them, and the total number of valid claims filed. The settlement administrator calculates each class member’s payment using a court-approved plan of allocation based on the artificial inflation built into the stock price at different points during the class period.

Estimated average recovery: approximately $0.85 per eligible share before deductions for attorneys’ fees and expenses.

The plan uses different formulas depending on when you sold your shares:

The $25,000,000 settlement fund breaks down as follows:

If your total recognized losses across all transactions calculate to zero or less, your recognized claim is $0 and you will not receive a payment. If total valid claims exceed the net fund, the administrator will reduce all payments proportionally on a pro rata basis.

How to File a Claim

Step 1 — Visit the official settlement website at drivenbrandssecuritieslitigation.com and click “File a Claim Online.”

Step 2 — Enter your personal details including the last four digits of your Social Security number or taxpayer identification number.

Step 3 — Enter your DRVN stockholding information, including the number of shares held as of the close of trading on October 26, 2021, all purchases and sales between October 27, 2021 and October 30, 2023, and shares held as of the close of trading on October 30, 2023.

Step 4 — Upload documentation to support your transactions. Acceptable proof includes broker confirmation slips, broker account statements, or authorized statements from your broker showing all required transaction details.

Step 5 — Review your completed claim form carefully and submit it online before July 6, 2026. Alternatively, download the PDF claim form and mail it to: Driven Brands Securities Litigation, c/o Strategic Claims Services, P.O. Box 230, 600 N. Jackson St., Suite 205, Media, PA 19063.

Step 6 — Save your claim confirmation number or submission screenshot for your records.

Estimated time to complete: 10–20 minutes depending on the number of transactions to enter.

Important Deadlines and Dates

Frequently Asked Questions

Do I need a lawyer to file a claim in this settlement? 

No. Class Counsel from Bernstein Litowitz Berger & Grossmann LLP represents all class members at no individual cost. You can file your claim directly at drivenbrandssecuritieslitigation.com without hiring your own attorney. If you want independent legal advice about your specific losses, you may hire your own lawyer at your own expense.

Is this Driven Brands settlement legitimate? 

Yes. The settlement is a court-supervised securities class action, Genesee County Employees’ Retirement System v. Driven Brands Holdings Inc., Case No. 3:23-cv-00895-MOC-DCK, filed in the U.S. District Court for the Western District of North Carolina. The official settlement website is drivenbrandssecuritieslitigation.com, administered by Strategic Claims Services. Contact the administrator directly at 855-433-7863 or [email protected] to verify any communication.

When will I receive my payment?

 The final approval hearing is scheduled for June 1, 2026. If the court approves the settlement and no appeals follow, the administrator will process all claims submitted by July 6, 2026 and distribute payments after that process concludes. Securities settlement payments typically take several months to distribute after final approval.

What if I missed the claim deadline?

 If you do not file a claim by July 6, 2026, you will not receive any payment from this settlement. You will still be bound by the settlement’s release of claims against Driven Brands unless you opted out before May 11, 2026. File as early as possible — do not wait until the last day.

Will this settlement payment affect my taxes?

 Securities fraud settlement payments are generally treated as a return of capital or capital gain, depending on your individual tax situation and the nature of your original investment. The settlement administrator will issue appropriate tax forms. Consult a qualified tax professional or CPA to understand exactly how to report your payment on your federal and state returns.

What were Driven Brands’ false statements about?

 The lawsuit alleged Driven Brands misled investors about two business areas. First, the company allegedly overstated progress building a nationwide auto-glass business. Second, the company allegedly made misleading statements about operational execution and customer retention performance in its car wash segment. Plaintiffs claimed these misrepresentations kept DRVN’s stock price artificially inflated throughout the class period.

What if I held DRVN in a retirement account or through a fund?

 If you directly purchased DRVN shares in a self-directed IRA or brokerage account, you may file an individual claim. If you held DRVN only through a mutual fund or ETF, you are generally not a class member — the fund itself may file. If your DRVN shares were held in an employer-sponsored ERISA retirement plan, your plan trustee must file on your behalf — do not file individually.

What is the difference between the opt-out deadline and the claim deadline? 

These are two separate deadlines that serve different purposes. The opt-out deadline (May 11, 2026) is your last chance to exclude yourself from the settlement and preserve your right to sue Driven Brands independently. The claim deadline (July 6, 2026) is your last day to submit a claim form and receive a payment from this settlement. Missing the claim deadline means no payment. Missing the opt-out deadline means you remain bound by the settlement’s release of claims.

Sources and References

1. Official Settlement Website — drivenbrandssecuritieslitigation.com
2. Class Notice PDF — Official Court Document

Investors who have money at stake in multiple securities settlements may also want to review the DiDi Global $740 million securities class action settlement with a claim deadline of April 6, 2026. If you purchased Catalent stock during a similar period of alleged misrepresentation, check eligibility under the Catalent $78 million securities class action settlement with a May 26, 2026 claim deadline.

Last Updated: March 14, 2026

Disclaimer: This article is for informational purposes only and does not constitute legal advice. Legal claims and outcomes depend on specific facts and applicable law. For advice regarding a particular situation, consult a qualified attorney.

About the Author

Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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