LEGAL GUIDES FOR INVESTORS
If you suffered losses Driven Brands stock, contact Driven Branks stock loss lawyer Timothy L. Miles about a Driven Brands class action lawsuit
INTRODUCTION TO THE DRIVEN BRANDS CLASS ACTION LAWSUIT
The Driven Brands class action lawsuit seeks to represent purchasers of Driven Brands Holdings Inc. (NASDAQ: DRVN) common stock between October 27, 2021 and August 1, 2023, inclusive (the “Class Period”). Captioned Genesee County Employees’ Retirement System v. Driven Brands Holdings Inc., No. 23-cv-00895 (W.D.N.C.), the Driven Brands class action lawsuit charges Driven Brands and certain of its top current and former executive officers with violations of the Securities Exchange Act of 1934.
If you suffered losses in Driven Brands stock and wish to serve as lead plaintiff in the Driven Brands class action lawsuit, or just have general questions about your rights as a shareholder, please contact Driven Brands Stock Loss Lawyer Timothy L. Miles at no charge by calling 855/846-6529 or via e-mail at [email protected] or by submitting a contact form.
Lead plaintiff motions for the Driven Brands class action lawsuit must be filed with the court no later than February 20, 2024.
In this comprehensive guide, we will discuss everything a Driven Brands shareholder needs to know about the Driven Brands class action lawsuit.
what are the ALLEGATIONS IN THE DRIVEN BRANDS CLASS ACTION LAWSUIT?
Driven Brands provides customers with a range of automotive needs, including paint, collision, glass, oil change, maintenance, and car wash.
The Driven Brands class action lawsuit alleges that throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that Driven Brands was at least “several quarters” behind on integrating the auto glass business it had acquired and Driven Brands’ car wash business was more exposed to the negative impacts from a decline in demand from retail customers than it represented to investors.
The Driven Brands class action lawsuit further alleges that on August 2, 2023, Driven Brands announced disappointing financial results for the second quarter of 2023 for both its auto glass and car wash business segments and slashed its full-year guidance for fiscal year 2023. On this news, Driven Brands common stock fell more than 41%, according to the complaint.
WHAT IS THE LEAD PLAINTIFF DEADLINE IN THE DRIVEN BRANDS CLASS ACTION LAWSUIT?
When a securities class action is filed such as the Driven Brands class action lawsuit, the person who files the first complaint is required to publish a notice announcing the filing. Anyone who wants to be lead plaintiff on behalf of the class in the Driven Brands class action lawsuit must thereafter file a motion to be appointed as lead plaintiff(s) no later than 60 days after the notice was published.
WHAT ARE MY CHOICES IF I RECEIVE A NOTICE IN THE DRIVEN BRANDS CLASS ACTION LAWSUIT?
First, read the notice very carefully. You have two choices. First, you can do nothing and remain a member of the class represented by lead counsel. Second, if you believe you have a large enough loss to justify it, you can opt out of the Driven Brands class action lawsuit and file your own separate lawsuit. Note, that if you opt out, you will not be able to participate in any settlement or recovery obtained in the Driven Brands class action lawsuit.
WHAT IS A SECURTIES FRAUD CLASS ACTION SUCH AS THE DRIVEN BRANDS CLASS ACTION LAWSUIT?
A securities fraud class action refers to a legal action taken by a group of investors who have suffered financial losses as a result of fraudulent activities committed by a company or its executives. This type of lawsuit is typically filed when a company misrepresents or withholds important information from investors, leading to a decline in the value of their investments. The purpose of a securities fraud class action is to seek compensation for the affected investors and hold the company accountable for its fraudulent practices. Securities fraud class actions are governed by the Private Securities Litigation Reform Act (PSLRA).
One notable securities fraud class action lawsuit is the Driven Brands class action lawsuit. In this case, investors who purchased Driven Brands securities alleged that the company made false and misleading statements and misled investors, and when the truth was ultimately disclosed, they suffered losses from purchasing shares that had been artificially inflated by the false and misleading information.
Securities fraud class actions are typically initiated by a lead plaintiff or a group of lead plaintiffs who represent the interests of all the affected investors. The lead plaintiff is often an institutional investor or a large shareholder who has suffered substantial losses and possesses the resources and expertise to effectively pursue the lawsuit on behalf of the class. The lead plaintiff's role is crucial in coordinating with legal counsel, gathering evidence, and making strategic decisions throughout the litigation process.
To proceed with a securities fraud class action, the lead plaintiff must demonstrate that there is a common issue of law or fact among the members of the class and that a class action is the most efficient and appropriate method for resolving their claims. If these requirements are met, the court will certify the lawsuit as a class action, allowing all eligible investors to participate in the litigation and share in any potential recovery.
Once certified, the securities fraud class action typically goes through several stages, including discovery, where both parties exchange relevant documents and information, and motion practice, where each side presents legal arguments to the court. If the case does not settle during these stages, it may proceed to trial, where a jury or judge will determine liability and damages.
In securities fraud class actions, the defendants are usually the company accused of fraud and its executives who were involved in the fraudulent activities. The lead plaintiff seeks damages on behalf of all class members, which may include compensation for their financial losses, interest, attorneys' fees, and other costs incurred throughout the litigation process.
In conclusion, a securities fraud class action is a legal mechanism used by investors to seek compensation for financial losses resulting from fraudulent activities committed by a company. The Driven Brands class action lawsuit serves as an example of how investors can hold companies accountable for their alleged misrepresentations and omissions. These lawsuits play an essential role in protecting investor rights and promoting transparency in the financial markets.
WHAT DO THE PLAINTIFFS HAVE TO PROVE TO PREVAIL IN THE DRIVEN BRANDS LAWSUIT?
To understand the basis of the Driven Brands lawsuit, it is essential to grasp the key elements of securities fraud actions. The majority of securities fraud claims are brought under Section 10(b) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. To prevail in a Rule 10b-5 action, a plaintiff must establish six elements:
THE LEAD PLAINTIFF PROCESS IN THE DRIVEN BRANDS CLASS ACTION LAWSUIT
The Private Securities Litigation Reform Act of 1995 permits any investor who purchased and suffered losses in Driven Brands stock to seek appointment as lead plaintiff in the Driven Brands class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class.
A lead plaintiff acts on behalf of all other class members in directing the class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the securities class action lawsuit. An investor’s ability to share in any potential future recovery of the class action lawsuit is not dependent upon serving as lead plaintiff. If you suffered losses in Driven Brands stock and have further questions, contact Driven Brands stock loss Lawyer Timothy L. Miles today who would fight to recover your damages in a Driven Brands class action lawsuit.
THE STAGES TO THE DRIVEN BRANDS CLASS ACTION LAWSUIT
Securities fraud class actions go through a series of stages. In the Driven Brands lawsuit the various steps to the lawsuit would be as follows:
CAN A NON-U.S. INVESTOR SERVE AS LEAD PLAINTIFF IN THE DRIVEN BRANDS LAWSUIT IF THEY SUFFERED LOSSES IN DRIVEN BRANDS STOCK?
Yes, courts in the U.S. have consistently recognized that non-U.S. investors, many of whom have substantial holdings, are adequate lead plaintiffs and have the same right to move for lead plaintiffs as U.S. investors. Thus, if a non-U.S. investor suffered losses in Driven Brands, they may move the Court to be appointed lead plaintiff in the Driven Brands lawsuit.
WHAT ARE THE BENEFITS OF SERVING AS LEAD PLAINTIFF IN THE DRIVEN BRANDS LAWSUIT?
Serving as a Lead Plaintiff in the Driven Brands lawsuit has several advantages and important benefits including:
Thus, there are numerous benefits and other advantages to serving as lead plaintiff in a class action against Driven Brands if you suffered losses in Driven Brands stock.
THE RESPONSIBILITIES THE LEAD PLAINTIFF WILL HAVE IN THE DRIVEN BRANDS LAWSUIT
A Lead Plaintiff owes a fiduciary duty to the class, and therefore, must act in the best interest of the class in the Driven Brands lawsuit. Some of the responsibilities of the Lead Plaintiff in the Driven Brands lawsuit include:
CAN I BE APPOINTED LEAD PLAINTIFF IN THE DRIVEN BRANDS CLASS ACTION LAWSUIT IF I PURCHASED SHARES OUTSIDE OF THE CLASS PERIOD?
No. Even if you suffered losses in Driven Brands stock, if you purchased securities outside of the Class period, you will not be able to participate in the Driven Brands class action lawsuit.
WILL THE LEAD PLAINTIFFS GET MORE MONEY THAN CLASS MEMBERS IF THE DRIVEN BRANDS CLASS ACTION LAWSUIT SETTLES?
No, but they may be entitled to recover their reasonable expenses incurred with are directly related to representing the class in the Driven Brands class action lawsuit. Under the Private Securities Litigation Reform Act of 1995, a Lead Plaintiff is only entitled to his or her pro rata share of any recovery and does not receive any additional money for serving as a representative party on behalf of the class. However, a court, in its discretion, may approve an award of “reasonable costs and expenses (including lost wages)” to a Lead Plaintiff that directly relates to the representation of the class in the Driven Brands class action lawsuit on behalf of investors who suffered losses in Driven Brands stock.
CAN I BE LEAD PLAINTIFF IN THE DRIVEN BRANDS CLASS ACTION LAWSUIT IF I AM LEAD PLAINTIFF IN ANOTHER CASE?
Yes, unless you have been a lead plaintiff in more than five securities class actions during any three-year period which is expressly prohibited by the securities laws. Otherwise, if you suffered losses in Driven Brands stock, you may move to be appointed lead plaintiff in the Driven Brands class action lawsuit.
CAN THE COURT APPOINT MORE THAN ONE LEAD PLAINTIFF IN THE DRIVEN BRANDS LAWSUIT?
Yes, at its discretion the Court may appoint a person, entity, or group of persons and/or entities as Lead Plaintiffs to oversee the Driven Brands lawsuit.
HOW WAS THE CLASS PERIOD DETERMINED IN THE DRIVEN BRANDS LAWSUIT?
In a securities fraud class action, the class period refers to a period of time in which it is alleged the price of the company’s stock was artificially inflated due to false and misleading statements made by company executives. The class period starts when the company makes an untrue statement of material fact about the company or fails to disclose a material fact necessary to render other statements not misleading. The class period ends when the truth is revealed to the investing public through a corrective disclosure.
In order to be a part of the class in the Driven Brands lawsuit, you must have suffered losses in Driven Brands stock by purchasing during the class period when it is alleged the price of the stock was artificially inflated to be included in the Driven Brands lawsuit.
CAN I SELL MY STOCK AND STILL BE A MEMBER OF THE CLASS IN THE DRIVEN BRANDS CLASS ACTION LAWSUIT?
Yes. There is no requirement for you to retain ownership of the stock after the class period has expired to participate in the Driven Brands class action lawsuit.
HOW CAN A DRIVEN BRANDS STOCK LOSS LAWYER HELP ME IF I SUFFERED LOSSES IN DRIVEN BRANDS STOCK?
A Driven Brands stock loss Lawyer is well-versed in the complex laws that govern the securities industry and litigation and focuses on representing individual investors or funds who have been the victims of fraud or who have disputes with investment professionals such as the Driven Brands class action lawsuit. Ordinary individual investors, including civil servants, teachers, nurses, and retirees, may need a securities lawyer. In most cases, they have lost money due to mistakes, incompetence, or fraud by an investment professional.
While FINRA, the SEC, and state securities regulators serve a vital role in protecting investors, they simply have too many individuals, firms, and market transactions to monitor to discover every act of fraud or negligence. Individual investors should consult with a securities lawyer if they have lost money due to fraud or stockbroker misconduct.
Look for a securities lawyer with experience, high ethical standards, verifiable credentials, and a trustworthy reputation among his peers and the judiciary, as well as testimonials from previous clients and awards and recognitions.
One name that immediately pops up is nationally known and widely respected Nashville lawyer Timothy L. Miles, who has valuable experience and has received numerous awards, mostly due to his high ethical standards, and hard work ethic, including most recently being named a