Lawsuit Overview
March 22, 2018 - The court granted defendants' motion to dismiss.
June 7, 2017 - A motion to dismiss the second amended complaint was filed.
April 7, 2017 - A second amended complaint was filed.
March 8, 2017 - The court granted the defendants' motion to dismiss. The plaintiffs were given leave to amend the complaint.
August 18, 2016 - A motion to dismiss the amended complaint was filed.
June 17, 2016 - An amended complaint was filed.
January 8, 2016 - An investor in shares of Chipotle Mexican Grill Inc (NYSE: CMG) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Chipotle Mexican Grill Inc (NYSE: CMG) in connection with certain allegedly false and misleading statements made between February 4, 2015 and January 5, 2016.
According to the complaint the plaintiff alleges on behalf of purchasers of Chipotle Mexican Grill Inc (NYSE: CMG) common shares between February 4, 2015 and January 5, 2016, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between February 4, 2015 and January 5, 2016 defendants made allegedly false and/or misleading statements and/or failed to disclose that Chipotle Mexican Grill Inc’s quality controls were not in compliance with applicable consumer and workplace safety regulations, that Chipotle Mexican Grill Inc’s quality controls were inadequate to safeguard consumer and employee health, and as a result of the foregoing, Chipotle Mexican Grill Inc’s public statements were materially false and misleading at all relevant times.
Chipotle Mexican Grill Inc reported that its annual Total Revenue rose from over $2.26 billion in 2011 to over $4.1 billion in 2014 and that its Net Income increased from $214.94 million in 2011 to $445.37 million in 2014.
Shares of Chipotle Mexican Grill Inc (NYSE: CMG) grew from $243 per share in October 2012 to as high as $757.77 per share in August 2015.
Between August 19 and September 3, 2015, more than 60 people fell ill after dining at Chipotle Mexican Grill Inc restaurants in Minnesota. On September 17, 2015, the Minnesota Department of Health announced that the illnesses were salmonella linked to tomatoes consumed at 22 Chipotle Mexican Grill Inc locations. The affected restaurants changed tomato suppliers but did not close.
On or around November 1, 2015, Chipotle Mexican Grill Inc closed all of its restaurants in Portland, Oregon and Seattle, Washington, following reports of approximately 20 cases of E. coli by Chipotle Mexican Grill Inc patrons.
On November 20, 2015, the Centers for Disease Control and Prevention (“CDC”) announced that the E. Coli outbreak in Oregon and Washington previously linked to Chipotle Mexican Grill Inc had spread to a total of six states.
On December 7, 2015, post-market, Boston College announced that several of its students had complained of gastrointestinal symptoms after eating at a Chipotle restaurant in Brighton, Massachusetts. On December 9, 2015, health officials confirmed that the students had contracted norovirus.
On January 6, 2016, Chipotle Mexican Grill Inc announced that it was served in December 2015 with a federal grand jury subpoena as part of a criminal investigation tied to a norovirus outbreak the previous summer at one of its restaurants in California. The investigation is being conducted by the U.S. Attorney's Office for the Central District of California in conjunction with the Food and Drug Administration (“FDA”).
Shares of Chipotle Mexican Grill Inc (NYSE: CMG) declined from $748.34 per share on August 14, 2015 to as low as $411.61 per share on January 7, 2016.