NEW YORK, NY / ACCESSWIRE / July 25, 2017 / Pomerantz LLP announces that a class action lawsuit has been filed against Chipotle Mexican Grill, Inc. ("Chipotle" or the "Company") (CMG) and certain of its officers. The class action, filed in United States District Court, District of Colorado, and docketed under 17-cv-01760, is on behalf of a class consisting of investors who purchased or otherwise acquired Chipotle securities, seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
If you are a shareholder who purchased Chipotle securities between February 5, 2016, and July 19, 2017, both dates inclusive, you have until September 18, 2017, to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll-free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here to join this class action]
Chipotle Mexican Grill, Inc. owns and operates quick-serve Mexican restaurants. The Company operates 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 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 Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or 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; (iii) in turn, Chipotle's quality controls remained inadequate to safeguard consumer and employee health; and (iv) as a result of the foregoing, Chipotle's public statements were materially false and misleading at all relevant times.