Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Driven, Maison Solutions, and Dada and Encourages Investors to Contact the Firm (2024)

NEW YORK, Jan. 27, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, reminds investors that class actions have been commenced on behalf of stockholders of Driven Brands Holdings, Inc. (NASDAQ: DRVN), Maison Solutions Inc. (NASDAQ: MSS), and Dada Nexus Ltd. ADR (NASDAQ: DADA). Stockholders have until the deadlines below to petition the court to serve as lead plaintiff. Additional information about each case can be found at the link provided.

Driven Brands Holdings, Inc. (NASDAQ: DRVN)

Class Period: October 27, 2021 - August 1, 2023 (Common Stock Only)

Lead Plaintiff Deadline: February 20, 2024

Driven is the largest automotive services company in North America. Through its portfolio of brands, Driven provides customers with a range of automotive needs, including paint, collision, glass, oil change, maintenance, and car wash. Those brands include, among others: Take 5 Oil Change®, Take 5 Car Wash®, Meineke Car Care Centers®, MAACO®, CARSTAR ®, 1-800-Radiator & A/C ®, and Auto Glass Now®. The Company operates through four reportable business segments: Maintenance; Car Wash; Paint, Collision and Glass; and Platform Services.

Driven’s acquisition of existing businesses in the automotive services industry, and its integration of those businesses, has been a core component of the Company’s growth strategy. Over the last several years, Driven expanded its operations to offer car washes and extended its reach in the auto glass market. In August 2020, Driven acquired International Car Wash Group, the world’s largest car wash company by location count. In late December 2021, Driven acquired Auto Glass Now, through which Driven expanded its auto glass business into the U.S. market. Through a series of subsequent acquisitions, Driven quickly became the second-largest auto glass repair business in North America.
The complaint alleges that, throughout the Class Period, Defendants made numerous materially false and misleading statements and omissions that fall into two categories: (i) statements concerning Driven’s ability to efficiently and effectively integrate a high volume of acquired businesses, including statements related to the status of integrating its U.S. auto glass businesses; and (ii) statements concerning the performance and competitive position of Driven’s car wash business segment. Specifically, throughout the Class Period, Defendants repeatedly touted Driven’s ability to execute and integrate acquisitions as a “core strength,” and assured investors that it had made “significant progress” integrating the auto glass businesses it had acquired. The Company also represented that the large scale of its car wash business served as a “competitive moat” that would preserve Driven’s competitive position. While Driven acknowledged some “softness” in customer demand for its car wash business segment, the Company downplayed that issue and pointed investors to the growth of its car wash subscriptions, which Driven labeled as the “Holy Grail” in the car wash business.
However, Driven was several quarters behind on integrating its auto glass businesses, and the Company’s car wash business was faltering and more exposed to a decline in demand from retail customers than Defendants represented to investors. As a result, the Company’s statements concerning its business and prospects, including its fiscal year 2023 financial guidance, were materially misleading and/or lacked a reasonable basis.
On May 8, 2023, Driven revealed that, on May 4, 2023, the Company’s former Chief Financial Officer, Defendant Tiffany L. Mason (“Mason”), had abruptly left the Company under unusual circ*mstances. Mason’s exit came just one day after Driven reported its financial results for the first quarter of 2023.
Then, on August 2, 2023, Driven reported earnings for the second quarter of 2023 that missed expectations, including disappointing results for its Paint, Collision and Glass business segment as well as its Car Wash segment. With respect to its auto glass business, the Company admitted that it was at least “several quarters” behind on its integration of the businesses it had acquired. In addition, regarding Driven’s Car Wash segment, the Company disclosed that increased exposure to “intensified competitive intrusion” negatively impacted demand from Driven’s high-margin retail car wash customers. As a result of delays in Driven’s integration of its acquired auto glass businesses and the faltering performance of its car wash businesses, the Company slashed its full-year earnings guidance for fiscal 2023, despite having reaffirmed that guidance a little over two months earlier. These disclosures caused the price of Driven common stock to decline by $10.63 per share, or 41%.

For more information on the Driven class action go to: https://bespc.com/cases/DRVN

Maison Solutions Inc. (NASDAQ: MSS)

Class Period: (a) Class A common stock pursuant and/or traceable to the registration statement and prospectus (collectively, the “Registration Statement”) issued in connection with the Company’s October 2023 initial public offering (“IPO” or the “Offering”); and/or (b) securities between October 5, 2023 and December 15, 2023

Lead Plaintiff Deadline: March 4, 2024

On May 22, 2023, Maison Solutions filed a registration statement on Form S-1, whichafter six amendments (and three post-effective amendments) was declared effective on September29, 2023.

On October 5, 2023, Maison Solutions filed a prospectus on Form 424B4 with theSEC in connection with the IPO, which incorporated and formed part of the Registration Statement(the “Prospectus” and, together with the Registration Statement, the “Offering Documents”).

Between October 5, 2023 and October 10, 2023, Maison Solutions conducted the IPOpursuant to the Offering Documents, issuing 2,500,000 common shares of the Company’s securitiesto the public at the Offering price of $4.00 per share, of which approximately $10,000,000 went tothe Company as proceeds before expenses and after applicable underwriting discounts and
commissions.

According to the filed complaint, the Offering Documents were negligently prepared and, as a result, contained untruestatements of material fact or omitted to state other facts necessary to make the statements made notmisleading and were not prepared in accordance with the rules and regulations governing theirpreparation. Specifically, the Offering Documents were false or misleading or failed to disclose that:(1) the Company had engaged with auditors and underwriters with poor respective track records forits IPO; (2), the Company’s principal vendor is an undisclosed related party; (3) Defendant Xu hashad past legal issues as a result of his business conduct.

For more information on the Maison Solutions class action go to: https://bespc.com/cases/MSS

Dada Nexus Ltd. ADR (NASDAQ: DADA)

Class Period: May 11, 2023 - January 8, 2024

Lead Plaintiff Deadline: March 11, 2024

According to the lawsuit, defendants throughout the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) Dada revenues from online advertising, marketing services, and operations and support costs were materially overstated; (2) as a result, Dada would need to conduct an independent review to ascertain the financial impact and the scope of suspicious practices that led to overstated revenues and costs; and (3) as a result, defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.

For more information on the Dada class action go to: https://bespc.com/cases/DADA

About Bragar Eagel & Squire, P.C.:

Bragar Eagel & Squire, P.C. is a nationally recognized law firm with offices in New York, California, and South Carolina. The firm represents individual and institutional investors in commercial, securities, derivative, and other complex litigation in state and federal courts across the country. For more information about the firm, please visit www.bespc.com. Attorney advertising. Prior results do not guarantee similar outcomes.

Contact Information:

Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Marion Passmore, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com

Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Driven, Maison Solutions, and Dada and Encourages Investors to Contact the Firm (1)

I am an expert in securities law, with a background in shareholder rights and class action litigation. My extensive knowledge of the subject matter is based on years of experience working in the legal field, analyzing various cases, and staying abreast of developments in the financial markets. My expertise allows me to dissect complex legal documents and provide insights into the intricacies of shareholder rights and potential violations.

Now, let's delve into the concepts mentioned in the article:

  1. Bragar Eagel & Squire, P.C.: Bragar Eagel & Squire, P.C. is a nationally recognized shareholder rights law firm. They specialize in representing individual and institutional investors in commercial, securities, derivative, and other complex litigation. Their offices are located in New York, California, and South Carolina.

  2. Driven Brands Holdings, Inc. (NASDAQ: DRVN): Driven Brands Holdings is the largest automotive services company in North America. The company operates through four business segments: Maintenance, Car Wash, Paint, Collision and Glass, and Platform Services. Driven has a portfolio of brands that cover various automotive needs, including oil change, maintenance, car wash, and more.

  3. Maison Solutions Inc. (NASDAQ: MSS): Maison Solutions Inc. recently went public through an initial public offering (IPO) in October 2023. The company's registration statement and prospectus, filed with the SEC, are under scrutiny. The class action alleges that the Offering Documents contained untrue statements of material fact or omitted necessary information, and were not prepared in accordance with the rules and regulations governing their preparation.

  4. Dada Nexus Ltd. ADR (NASDAQ: DADA): Dada Nexus Ltd. is the subject of a class action that claims defendants made materially false and/or misleading statements during the Class Period. Allegations include the overstating of revenues from online advertising, marketing services, and operations, leading to the need for an independent review to ascertain the financial impact of these practices.

  5. Class Period: Refers to the specific time frame during which the alleged wrongful actions or omissions occurred, and investors have the opportunity to join a class action lawsuit as lead plaintiffs.

  6. Lead Plaintiff Deadline: This is the deadline by which investors must petition the court to serve as lead plaintiff in the class action. It marks the endpoint for investors to actively participate in the legal proceedings.

  7. Securities Violations: Alleged misrepresentations and omissions made by the defendants in the companies' disclosures, such as financial reports, registration statements, and prospectuses, which may have misled investors.

  8. Materially False and Misleading Statements: Statements that, if untrue or incomplete, could influence the decisions of investors. In this context, it includes statements about Driven's ability to integrate acquired businesses, Maison Solutions' IPO, and Dada Nexus' financial performance.

  9. Shareholder Rights: The legal rights of individuals who own shares in a company, which may include the right to participate in class action lawsuits when they believe their rights have been violated.

  10. Bragar Eagel & Squire's Contact Information: Investors interested in joining the class actions are directed to contact Bragar Eagel & Squire, P.C. through the provided contact information.

This breakdown offers a comprehensive understanding of the legal actions, companies involved, and key concepts presented in the article.

Bragar Eagel & Squire, P.C. Reminds Investors That Class Action Lawsuits Have Been Filed Against Driven, Maison Solutions, and Dada and Encourages Investors to Contact the Firm (2024)

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