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Chipotle Mexican Grill, Inc.

A class action lawsuit has been filed in the United States District Court for the District of Colorado against Chipotle Mexican Grill, Inc. ("Chipotle" or the "Company") (NYSE:CMG) and certain of its officers, on behalf of a class consisting of investors who purchased or otherwise acquired Chipotle securities during the period from February 5, 2016 through July 19, 2017 (the "Class Period")

Chipotle Mexican Grill, Inc. owns and operates quick-serve Mexican restaurants throughout the United States.

In 2015, numerous customers fell ill after eating at Chipotle restaurants, exposing the fact that Chipotle's quality controls were not in compliance with applicable consumer and workplace safety regulations and were inadequate to safeguard consumer and employee health. Facing a sharp drop-off in sales, Chipotle responded with widely publicized measures that the Company touted as improvements to its food safety protocols.

On February 8, 2016, the Company closed all of its restaurants for several hours for an all-staff meeting regarding food safety. In addition, Chipotle hired a new head of food safety who implemented a number of changes to policies at the Company's restaurants - for example, requiring all employees to wash their hands every half hour, mandating that two employees verified that certain ingredients had been immersed in hot water for at least five seconds to kill germs, and using Pascalization (a process in which a product is processed under very high pressure, leading to the inactivation of certain microorganisms and enzymes in the food) to pre-treat food ingredients. By touting these measures, along with free food promotions and increased advertising, Chipotle aimed to restore customer confidence in the safety of its food.

The lawsuit alleges that throughout the Class Period, Defendants failed to disclose that: (i) Chipotle's purported improvements in its restaurants' food safety policies were inadequate; (ii) accordingly, Chipotle's quality controls were still not in compliance with applicable consumer and workplace safety regulations; and (iii) in turn, Chipotle's quality controls remained inadequate to safeguard consumer and employee health.

On July 18, 2017, media outlets reported that Chipotle had closed a restaurant in Sterling, Virginia due to a suspected norovirus outbreak. According to Business Insider, citing information from iwaspoisoned.com, a website on which consumers document suspected incidents of foodborne illness, at least 13 customers fell ill after eating at the Chipotle restaurant in question between July 14 and July 15. The Business Insider article further stated that customers who fell sick after eating at the restaurant reported "vomiting violently," fevers, "violent stomach cramps," and dizziness for several days.

On this news, Chipotle's share price fell $17.02, from $392 to $374.98 per share on July 18, 2017, damaging investors.

On July 20, news reports and video surfaced of rats in a Dallas-area Chipotle restaurant. On this news, Chipotle's stock price fell from $372.83 to $356.05 per share, further damaging investors.

If you acquired Chipotle securities during the Class Period, you may, no later than September 18, 2017, request that the court appoint you lead plaintiff of the class. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions that could affect the overall recovery for class members, including decisions concerning settlement.

If you are a current or former Chipotle shareholder and wish to obtain additional information, please fill out the contact form at the link below.


Investigation Contact Form

Chipotle Mexican Grill, Inc. Contact Form



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