NEW YORK, July 21, 2017 (Hospitalitybusinessnews.com) — Attorney Advertising — Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Chipotle Mexican Grill, Inc. and certain of its officers, on behalf of shareholders who purchased Chipotle securities between February 5, 2016, and July 19, 2017, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: http://www.bgandg.com/cmg.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
In 2015, several customers fell ill after eating at Chipotle restaurants, revealing the fact that its quality controls were not in compliance with applicable consumer and workplace safety regulations and were insufficient to safeguard consumer and employee health.
Following a significant drop in sales, Chipotle countered with public measures to restore its image. On February 8, 2016, Chipotle closed all of its restaurants for several hours for a staff meeting about food safety. The company also hired a new head of food safety who implemented a number of changes to policies at its restaurants, hoping to regain customer confidence in the safety of its food.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that: (1) Chipotle’s purported improvements in its restaurants’ food safety policies were inadequate; (2) accordingly, Chipotle’s quality controls were still not in compliance with applicable consumer and workplace safety regulations; (3) as a result, Chipotle’s quality controls remained inadequate to safeguard consumer and employee health; and (4) consequently, Chipotle’s public statements were materially false and misleading at all relevant times.
On July 18, 2017, several news sources reported that Chipotle had closed a restaurant in Sterling, Virginia due to a suspected norovirus outbreak. Business Insider described information from a website where consumers report suspected incidents of foodborne illness, iwaspoisoned.com, that at least 13 customers fell ill after eating at the Chipotle restaurant in question between July 14 and July 15. The Business Insider article continued to state that customers who fell sick after eating at the restaurant reported “vomiting violently,” fevers, “violent stomach cramps,” and dizziness for several days. Following this news, Chipotle stock dropped $17.02 per share, or 4.34%, to close at $374.98 on July 18, 2017.
On July 20, 2017, The Wall Street Journal published an article, “Over 100 Report Being Sickened at Virginia Chipotle,” revealing that reports of illness from Chipotle restaurants were growing. On that same day, Reuters also published an article, “Chipotle Virginia customer tested positive for norovirus – official,” revealing that norovirus was confirmed in a customer who ate at the Virginia Chipotle Mexican Grill Inc. restaurant by a county health department official. Then CNBC published an article, “Rodents reportedly fall from ceiling of Dallas Chipotle,” stating that on July 19, 2017 rodents were seen at a Chipotle in Dallas. Following these revelations, Chipotle stock dropped $16.78 per share, or 4.5%, to close at $356.05 on July 20, 2017.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm’s site: http://www.bgandg.com/cmg or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Chipotle you have until September 18, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn’t require that you serve as a lead plaintiff.