A New York law firm last week announced it would lead a class action lawsuit against Chipotle by the company’s shareholders. The lawsuit was filed against Chipotle Mexican Grill and its officers, on behalf of shareholders who purchased Chipotle securities between February 5th, 2016, and July 19th, 2017.
The class action seeks to recover damages for alleged violations of federal securities laws under the Securities Exchange Act of 1934. The suit alleges that Chipotle made false statements relating to the chains food quality and safety measures, following several occasions of illness outbreaks relating back to Chipotle restaurants.
The most recent outbreak of norovirus originating from a Chipotle restaurant in Virginia, and a report of rats falling out of a Chipotle restaurant ceiling in Dallas, Texas, sparked the lawsuit. This is not the first time a class action suit was filed on behalf of Chipotle shareholders. A similar suit was filed in the wake of E. coli and norovirus outbreaks of 2015.