Roark Capital, Driven Brands Sued by Investor on CEO Veto Rights

A Driven Brands Holdings Inc. investor is suing members of its board and affiliates of Roark Capital Group Inc., a major backer, over a pact giving the private equity firm a veto on the company’s choice of CEO.

The lawsuit, filed in Delaware, targets an investment agreement between the Roark affiliates and Driven, a holding company that owns autobody chains. The shareholder suit says the board effectively gave Roark the final word on a critical issue that corporate directors are legally required to decide themselves.

The complaint in Delaware’s Chancery Court is part of a wave of cases challenging charter ...