May 10, 2016 (Shareholders Foundation) - An investor in shares of Chipotle Mexican Grill, Inc. (NYSE:CMG) filed a lawsuit against certain directors and officers of Chipotle Mexican Grill over breaches of fiduciary duties in connection with allegedly excessive compensation awarded from 2011 to 2015 under the Company’s stock incentive plan.
The lawsuit by a current investor in NYSE:CMG stocks follows a lawsuit filed recently against Chipotle Mexican Grill, Inc. over alleged securities laws violations. According to that complaint filed in the U.S. District Court for the Southern District of New York the plaintiff alleges that the defendants made allegedly false and/or misleading statements and/or failed to disclose that Chipotle Mexican Grill’s quality controls were not in compliance with applicable consumer and workplace safety regulations, that Chipotle Mexican Grill’s quality controls were inadequate to safeguard consumer and employee health, and as a result of the foregoing, Chipotle Mexican Grill’s public statements were materially false and misleading at all relevant times.

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 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 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”).