Driven Brands Sued Over Accounting Errors, 30% Stock-Price Drop

Driven Brands Holdings Inc. touted its growth and revenue for three years before acknowledging its financial statements for most of that period contained material errors, a shareholder alleges.

The investor, a Florida retirement fund, is suing to recover losses from Driven Brands’ 30% stock drop on the day the company announced its financial miscalculations. The City of Hollywood Police Officers’ Retirement System filed its proposed class action against the automotive services provider and franchisor Wednesday in the US District Court for the Western District of North Carolina.

The suit comes just a few months after Driven Brands reached a $25 ...