Chipotle Sickens Customers, Shareholders

The last several months have not been kind to Chipotle; nor to many customers that have eaten there. The Denver based company has been reeling since August, 2015, when dozens of patrons in one of their California restaurants became violently ill; see: diarrhea, vomiting. The breakouts continued throughout 12 other states, culminating with the National News worthy outbreak in the state of Massachusetts. A Brighton, MA Chipotle (part of Boston) got hundreds of patrons sick, with E Coli and Norovirus, including members of the Boston College Men’s Basketball Team.

Chipotle is already facing lawsuits filed on behalf of patrons affected by the Norovirus and E Coli breakouts. Now they can add Shareholders to the list of litigant advisories.  As news of the outbreaks became public, Chipotle has seen sales drop 40% and has seen its stock drop over $200 a share. That’s a lto of guacamole! As a result, Chipotle shareholders have filed a Class Action lawsuit against the company.

“The suit was filed in a U.S. District Court in New York against the Denver-based company, and is called Susie Ong v. Chipotle et al.The lawsuit accuses Chipotle executives of making false statements and omitting material information in order to mislead investors and personally benefit from the sale of Chipotle securities. The suit specifically says Chipotle failed to disclose that its quality controls were inadequate to safeguard consumer and employee health. The class includes anyone who bought shares in Chipotle since February, 2015, up until January 6, 2016.”  The Expert Institute

-Jazlowiecki & Jazlowiecki