DRIVEN BRANDS CLASS ACTION LAWSUIT: UNDERSTANDING YOUR RIGHTS as a shareholder under the pslra

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 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.
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If you suffered losses in Driven Brands stock and wish to serve as lead plaintiff in the Driven Brands class action lawsuit, please contact Driven Brands Stock Loss Lawyer Timothy L. Miles 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 January 16, 2024.

The Driven Brands class action lawsuit is a securities fraud class action lawsuit that is governed by the Private Securities Litigation Reform Act of 1995 (PSLRA).  In the article we will address certain key provisions of the PSLRA, both procedurally and substantively, that govern securities fraud class actions such as the Driven Brands class action lawsuit which shareholders should be familiar with as it may impact decisions they make concerning the litigation.  In this guide, we will further discuss in detail some of the more relevant provisions of the PSLRA so that shareholders have a better understanding of the statutory farmwork, which we hope will ultimately help them with their options in the litigation and help them make more informed choices armed with this knowledge. ​

WHAT IS A SECURTIES FRAUD CLASS ACTION?

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​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. 
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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.

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WHAT IS THE PSLRA and how does it effect the driver brands class action lawsuit?

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​​The Driven Brands class action lawsuit is governed by the PSLRA. The PSLRA is a landmark legislation enacted in 1995 and aims to protect investors from baseless lawsuits while still allowing legitimate claims such as the Driven Brands class action lawsuit to proceed. This act has had a significant impact on the securities litigation landscape, shaping the way class actions are brought and resolved.

One of the key provisions of the PSLRA is the requirement for plaintiffs to provide specific and particularized facts when alleging a misrepresentation or omission in a securities fraud case.  Plaintiffs in the Driven Brands class action lawsuit must state with particularity the facts giving rise to a strong inference that the defendant acted with fraudulent intent.

Another important aspect of the PSLRA is the provision for a stay of discovery pending the resolution of any motions to dismiss the Driven Brands class action lawsuit. This means that defendants have the opportunity to challenge the sufficiency of the complaint filed in the Driven Brands class action lawsuit before engaging in discovery, with some limited exceptions.. 
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Perhaps most relevant at this stage of the proceedings, is that the PSLRA also requires courts to appoint lead plaintiffs and lead counsel in securities class actions such as the Driven Brands class action lawsuit. This ensures that investors with the largest financial stake in the litigation are represented and have control over important decisions, such as settlement negotiations. The lead plaintiff must meet certain criteria, including having made a timely request to be appointed as lead plaintiff and having the largest financial interest in the relief sought by the class.

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WHAT IS THE LEAD PLAINTIFF DEADLINE IN THE DRIVEN BRANDS CLASS ACTION LAWSUIT?

The lead plaintiff deadline in the Driven Brands class action lawsuit is fast approaching, and investors who wish to participate in the case must act promptly. A securities class action lawsuit is a legal proceeding in which a group of investors who have suffered financial losses due to alleged fraudulent or misleading activities by a company join forces to seek compensation. In this case Driven Brands and certain of its executives are accused of making false and misleading statements about its business prospects as well as filing false and misleading financial statements. The lead plaintiff deadline is the date by which an investor must file a motion with the court to be appointed as the lead plaintiff in the class action lawsuit.

​Pursuant to the PSLRA, 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.  The PSLRA then requires anyone who wants to be lead plaintiff on behalf of the class in the Driven Brands class action lawsuit thereafter file a motion to be appointed as lead plaintiff(s) no later than 60 days after the notice was published. ​

WHAT IS THE APPOINTMENT OF LEAD PLAINTIFFS UNDER THE PSLRA?

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Under the PSLRA, the appointment of lead plaintiffs in securities class action lawsuits is a critical step in the litigation process. One of the key provisions of the PSLRA is the requirement for the court to appoint a lead plaintiff to represent the interests of the class members in the Driven Brands class action lawsuit. This appointment is made within 90 days of the filing of the Driven Brands class action lawsuit, and the lead plaintiff is responsible for overseeing the litigation on behalf of all other class members.

The appointment of lead plaintiffs serves several important purposes. First and foremost, it ensures that the interests of the class members in the Driven Brands class action lawsuit are adequately represented in the litigation. By appointing a lead plaintiff who has a financial stake in the outcome of the Driven Brands class action lawsuit, the court can be confident that the litigation will be pursued diligently and in a manner that maximizes recovery for all class members. Additionally, having a lead plaintiff who is actively involved in the Driven Brands class action lawsuit allows for efficient coordination and communication between class members and their legal counsel.
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To be eligible for appointment as a lead plaintiff in the Driven Brands class action lawsuit, an individual or entity must meet certain criteria as outlined in the PSLRA. These criteria include having the largest financial interest in the relief sought by the class and being able to adequately represent the class members' interests. The PSLRA also requires potential lead plaintiffs to submit a certification stating that they are willing to serve as lead plaintiffs and that they will not accept any payment or settlement that is inconsistent with the interests of the class.

In conclusion, the appointment of lead plaintiffs under the PSLRA is a crucial step in securities class action lawsuits. It ensures that the interests of class members are adequately represented and allows for efficient coordination and communication between class members and their legal counsel. By setting forth specific criteria for eligibility, the PSLRA aims to select lead plaintiffs who have a financial stake in the outcome of the case and are committed to pursuing maximum recovery for all class members.

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What is the Lead Plaintiff Appointment Process under the pslra?

​The PSLRA established certain procedures for appointing the lead plaintiff. For example,  each plaintiff who moves to become the lead plaintiff must provide a sworn certification that:

• States the plaintiff has reviewed and authorized the filing of the complaint
  
• States the plaintiff did not purchase the security at issue in the complaint at the direction of plaintiff’s counsel or in order to participate in any securities class actions
  
• States the plaintiff is willing to serve as class representative
  
• Identifies all of the plaintiff’s transactions in the security at issue during the class period specified in the complaint
  
• Identifies any other securities class actions filed in the preceding three years in which plaintiff has sought to serve as class representative
  
• States plaintiff will not accept any payment for serving as class representative beyond plaintiff’s pro rata share of any recovery, except as ordered or approved by the court

The court must appoint the lead plaintiff that has the largest financial interest in the relief sought by the class, as determined by the court, and otherwise satisfies the requirements of Rule 23 of the Federal Rules of Civil Procedure. ​This presumption can be rebutted only if a purported class member proves that the presumptively most adequate plaintiff (1) will not be able to fairly and adequately protect the interests of the class or (2) is subject to unique defenses that render them incapable of adequately representing the class. 

under the PSLRA, 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.

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:

• A Lead Plaintiff is able to negotiate more competitive attorney fees and reduce other litigation costs by actively monitoring the class counsel.
• Lead Plaintiff has the benefit of being able to manage the litigation primarily by overseeing and monitoring the progress of the action and the efforts of counsel, and being able to review and comment on important filings and other documents pertaining to the prosecution of the action.
• There is no financial risk in serving as a Lead Plaintiff because Lead Counsel advances all costs and expenses incurred it the prosecution of the case and will be reimbursed only if there is a successful settlement or judgment recovery on behalf of the class.
• Lead Plaintiff has the benefit involved and active in all negotiations relating to any settlement.
• Lead Plaintiffs that continue owning the stock of the defendant will enjoy the long-term benefits from governance reform resulting from the litigation. 

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. 

WHAT RESPONSIBILITIES WILL THE LEAD PLAINTIFF 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:

• Selecting, monitoring, and overseeing Lead Counsel.
• Reviewing and commenting on court filings on behalf of the class.
• Discussing litigation strategies with the Lead Counsel.
• Attending depositions (if necessary) and giving a deposition.
• Attending hearings (if necessary).
• Participating in mediation and the trial (if necessary).
• Provide input on any decision concerning the settlement of the securities class action.

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 PSLRA. 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 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 under the PSLRA that you to retain ownership of the stock after the class period has expired 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 PSLRA, 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. ​

what is the stay of discovery under the pslra?

​The stay of discovery under the PSLRA is a provision that aims to protect defendants from burdensome and costly discovery procedures in class action lawsuits. The PSLRA was enacted in 1995 to address concerns about so-called frivolous securities class action lawsuits that some argued were causing financial harm to businesses and individuals. One of the key provisions of the PSLRA is the stay of discovery, which halts the gathering of evidence and information during the early stages of a lawsuit.

In the context of the Driven Brands class action lawsuit, the stay of discovery would prevent plaintiffs from conducting extensive discovery activities until certain conditions are met. Under the PSLRA, the stay of discovery is triggered when a defendant files a motion to dismiss the complaint. This motion challenges the sufficiency of the allegations made by the plaintiffs and requests that the court dismiss the case.

However, there are exceptions to the stay of discovery under the PSLRA. The automatic stay of discovery can be lifted to preserve evidence that would otherwise be lost or destroyed. Additionally, several courts have allowed an exception to the automatic stay to allow parties to serve so called preservation subpoenas on nonparties, who are not covered by the statutory preservation obligation, directing them to preserve documents identified in the subpoena.

The automatic stay of discovery may be lifted to avoid undue prejudice to a party, which courts have defined to mean improper or unfair treatment that is less than irreparable harm.  Examples of where courts have lifted the automatic stay under these circumstances include situations where:

• The defendant would be unfairly shielded from liability through pursuit of its pending action. 
  
• The Plaintiff would be placed at an unfair disadvantage to make informed decisions about litigation and settlement strategy without access to documents that form the core of the proceeding.
  

Overall, while the stay of discovery under the PSLRA provides defendants with some protection against burdensome and costly discovery procedures, it also includes exceptions that ensure plaintiffs have access to essential information needed to pursue their claims effectively.  Nevertheless, once the court has denied a motion to dismiss, the stay is lifted and discovery proceeds as normal. 

what is the pleading standing under the pslra?

The pleading standard under the PSLRA is a crucial aspect of securities class action lawsuits, such as the Driven Brands class action lawsuit. The PSLRA was enacted to regulate securities fraud litigation and to address concerns over what some perceived as frivolous lawsuits. The pleading standard requires plaintiffs to meet certain criteria in order to proceed with their claims.

Under the PSLRA, plaintiffs are required to provide a detailed and specific statement of each alleged misrepresentation or omission made by the defendant. This means that the plaintiff must not only identify the statements in question but also provide sufficient facts and evidence to support their claim. The purpose of this requirement is to ensure that plaintiffs have a legitimate basis for their allegations and to discourage meritless lawsuits.

In the Driven Brands class action lawsuit, the plaintiffs will need to demonstrate that the company made false or misleading statements regarding its financial performance or other material information. These statements must have been made with the intent to deceive or manipulate the market. Additionally, the plaintiffs will have to show that they suffered a financial loss as a result of relying on these false statements.

The pleading standard under the PSLRA sets a higher bar for plaintiffs compared to other types of lawsuits. By requiring plaintiffs to provide specific details and evidence, the PSLRA aims to ensure that valid claims such as those in the Driven Brands class action lawsuit are pursued and allowing investors to recover their losses from purchasing stock at artificially inflated prices.

In conclusion, the pleading standard under the PSLRA is an important aspect of class action lawsuits, including the case involving the Driven Brands class action lawsuit. This standard requires plaintiffs to provide specific details and evidence supporting their allegations of securities fraud. By setting a higher bar for plaintiffs, the PSLRA seeks to discourage frivolous lawsuits while ensuring that legitimate claims such as those presented in the Driven Brands class action lawsuit are pursued.

Does the PSLRA have any requirments for settlements?

Yes, should the Driven Brands class action lawsuit settle, the PSLRA provides several disclosure requirements with respect to any final proposed settlement including:

• ​The amount of the settlement proposed, determined in the aggregate and on an average per share basis;
  
• A statement on the average amount of potential damages per share if the parties agree on the amount or, if the parties do not agree, a statement of issues on which the parties disagree;
  
• A statement indicating which parties or counsel intend to make an application for an award of attorney’s fees or costs, the amount of fees and costs that will be sought, and an explanation supporting the fees and costs;
  
• The name and contact information of lead counsel who can answer questions in the notice • A brief statement explaining why the parties are settling • Any other information as required by the courts; and  
  
• A cover page summarizing the above information.

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 including and litigation including the PSLRA, and focuses on representing individual investors or funds who have been the victims of fraud or who have disputes with investment professionals such as in 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 Top 25 Class action lawyer by the National Trial Lawyers Association, and has maintained an AV rating from Martindale-Hubble since 2014, was named a 2023 Top Rated Litigator and 2023 Top Rated Lawyer by Martindale-Hubble and ALM, and was recently named a 2023 Elite Lawyer of the South by Martindale-Hubble for the fifth year in a row, and was a recipient of Avvo Client’s Choice Award in 2021, in 2022 was featured in the Top 100 Lawyers Magazine and received the Lifetime Achievement Award by Premier Lawyers of America (2019–2021).

​This will most likely be the only call you need to make. (855) 846–6529 or [email protected]. 

HOW MUCH DOES IT COST TO HIRE A DRIVEN BRANDS STOCK LOSS LAWYER IF I SUFFERED LOSSES IN DRIVEN BRANDS STOCK?

​​Nothing.  ​If you suffered losses in Driven Brands​ and are a member of the class, it does not cost anything to hire a Driven Brands stock loss lawyer.  Our firm litigates securities fraud cases on a contingent fee basis, so plaintiffs and the class do not pay attorneys’ fees or court costs unless there is a recovery, and the attorney fees and costs are awarded by the court as a percentage of the total recovery for the class.  So, contact a Driven Brands stock loss lawyer today if you suffered losses in Driven Brands ​stock about a Driven Brands class action lawsuit.

CONTACT A DRIVEN BRANDS STOCK LOSS LAWYER TODAY IF YOU SUFFERED LOSSES IN DRIVEN BRANDS STOCK ABOUT A DRIVEN BRANDS CLASS ACTION LAWSUIT

​If you suffered losses in Driven Brands stock, contact Driven Brands stock loss lawyer Timothy L. Miles today for a free case evaluation about a Driven Brands class action lawsuit. Call today and see what a Driven Brands stock loss lawyer could do for you if you suffered losses in Driven Brands stock. 

​The call is free and so is the fee unless we will or settle your case. ​

Driven Brands stock loss lawyer Timothy L. Miles

Nashville attorney Timothy L. Miles is a nationally recognized shareholder rights attorney raised in Nashville, Tennessee. Mr. Miles has dedicated his career to representing shareholders, employees, and consumers in complex class-action litigation. Whether serving as lead, co-lead, or liaison counsel, Mr. Miles has helped recover hundreds of millions of dollars for defrauded investors,  shaped precedent-setting decisions, and delivered real corporate governance reforms. Judges and peers have repeatedly recognized Mr. Miles’ relentless advocacy for the underdog, as well as his unbendable ethical standards. Mr. Miles was recently selected by Martindale-Hubbell® and ALM as a 2022 Top Ranked Lawyer, 2022 Top Rated Litigator. and a 2022 Elite Lawyer ofthe South. Mr. Miles also maintains the AV Preeminent Rating by Martindale-Hubbell®, their highest rating for both legal ability and ethics. Mr. Miles is a member of the prestigious Top 100 Civil Plaintiff Trial Lawyers: The National Trial Lawyers Association,​Class Action:  Class Action: Top National Trial Lawyers, National Trial Lawyers Association (2023), a superb rated attorney by Avvo, a recipient of the Lifetime Achievement Award by Premier Lawyers of America (2019) and recognized as a Distinguished Lawyer, Recognizing Excellence in Securities Law, by Lawyers of Distinction (2019); a Top Rated Litigator by Martindale-Hubbell® and ALM  (2019-2022); America’s Most Honored Lawyers 2020 – Top 1% by America’s Most Honored (2020-2022).  Mr. Miles has published over sixty articles on various issues of the law, including class actions, whistleblower cases, products liability, civil procedure, derivative actions, corporate takeover litigation, corporate formation, mass torts, dangerous drugs, and more.  Please visit our website or call for free anytime.

CONTACT                                                      
The Law Offices of Timothy L. Miles
Tapestry at Brentwood Town Center
​300 Centerview Dr., #247
Brentwood, TN 37027
​​Phone: (855) 846-6529