NEW YORK, Aug. 01, 2017 (GLOBE NEWSWIRE) -- Safirstein Metcalf LLP announces that a class action lawsuit has been filed against Chipotle Mexican Grill, Inc. ("Chipotle" or the "Company") (NYSE: CMG ) and certain of its officers. The class action, filed in United States District Court, District of Colorado, is on behalf of a class consisting of investors who purchased or otherwise acquired Chipotle securities between February 5, 2016 and July 19, 2017 (“Class Period”) seeking to recover compensable damages caused by defendants' violations of the Securities Exchange Act of 1934.
If you purchased Chipotle securities during the class period, and would like more information about the shareholder class action, please contact Safirstein Metcalf LLP at 1-800-221-0015, or email info@SafirsteinMetcalf.com
If you wish to serve as lead plaintiff, you must move the Court no later than September 18, 2017. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
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.
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. Following this news, Chipotle’s share price fell $17.02, or 4.34%, to close at $374.98 on July 18, 2017.
On July 20, 2017, The Wall Street Journal published an article entitled “Over 100 Report Being Sickened at Virginia Chipotle,” disclosing that the number of reports of illness associated with the restaurant-chain continue to rise.
Later in the day, CNBC published an article entitled “Rodents reportedly fall from ceiling of Dallas Chipotle,” reporting that rodents were spotted at a Dallas-area Chipotle on July 19, 2017. According to the article, diners captured the incident inside the restaurant on video, which shows “rodents crawling around the floor and one climbing up the wall,” and with customers claiming the rodents were falling from the ceiling. Following these disclosures, Chipotle’s share price fell $16.78, or 4.5%, to close at $356.05 on July 20, 2017
About Safirstein Metcalf LLP
Safirstein Metcalf LLP focuses its practice on shareholder rights. The law firm also practices in the areas of antitrust and consumer protection. All of the Firm’s legal endeavors are rooted in its core mission: provide investor and consumer protection.
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