Investigations
Chipotle Mexican Grill, Inc.
Overview
Overview
- Deadline:
- Jan 10, 2025
| Company Name: | Company Name: Chipotle Mexican Grill, Inc. |
| Stock Symbol: | Stock Symbol: CMG |
Chipotle Mexican Grill, Inc. (NYSE: CMG): Chipotle Mexican Grill, Inc. (“Chipotle” or the “Company”) and certain of the Company’s senior executives have been sued for violations of the federal securities laws. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in Chipotle securities. The case is pending in the U.S. District Court for the Central District of California and is captioned Stradford v. Chipotle Mexican Grill, Inc., et al., No. 24-cv-02459.
If you incurred losses on your investments in Chipotle, you are encouraged to submit your information.
Why was Chipotle Sued for Securities Fraud?
Chipotle owns and operates more than 3,000 Chipotle Mexican Grill restaurants across the United States, Canada, and Western Europe.
The complaint alleges that in response to negative news reports accusing Chipotle of reducing portion sizes provided to customers, the Company repeatedly misrepresented that there “have been no changes in our portion sizes.”
The Stock Declines as the Truth is Revealed
On July 24, 2024, Chipotle admitted that portion inconsistency was, in fact, a problem at the Company’s restaurants and that in order to correct the inconsistent portion sizes, the Company would experience a higher cost of sales. Over the course of the next two days, July 25 and July 26, 2024, the price of the Company’s stock fell 3.8%, from a closing price of $51.78 per share on July 24, 2024, to $49.83 per share on July 26, 2024.
Then, on October 29, 2024, after market hours, Chipotle revealed a 30.6% increase in its cost of sales, in part because the Company “focused on ensuring consistent and generous portions.” The next day, October 30, 2024, Business Insider reported that “Profit margins for the chain suffered last quarter because of a concerted effort to provide ‘consistent and generous portions’ in every order.” On October 30, 2024, the price of the Company’s stock fell 7.9%, from a closing price of $60.49 per share on October 29, 2024, to $55.73 per share on October 30, 2024.
What are my Rights?
If you purchased or otherwise acquired Chipotle securities, you may ask the Court no later than January 10, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in Chipotle, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.
If you incurred losses on your investments in Chipotle, you are encouraged to submit your information.
Why was Chipotle Sued for Securities Fraud?
Chipotle owns and operates more than 3,000 Chipotle Mexican Grill restaurants across the United States, Canada, and Western Europe.
The complaint alleges that in response to negative news reports accusing Chipotle of reducing portion sizes provided to customers, the Company repeatedly misrepresented that there “have been no changes in our portion sizes.”
The Stock Declines as the Truth is Revealed
On July 24, 2024, Chipotle admitted that portion inconsistency was, in fact, a problem at the Company’s restaurants and that in order to correct the inconsistent portion sizes, the Company would experience a higher cost of sales. Over the course of the next two days, July 25 and July 26, 2024, the price of the Company’s stock fell 3.8%, from a closing price of $51.78 per share on July 24, 2024, to $49.83 per share on July 26, 2024.
Then, on October 29, 2024, after market hours, Chipotle revealed a 30.6% increase in its cost of sales, in part because the Company “focused on ensuring consistent and generous portions.” The next day, October 30, 2024, Business Insider reported that “Profit margins for the chain suffered last quarter because of a concerted effort to provide ‘consistent and generous portions’ in every order.” On October 30, 2024, the price of the Company’s stock fell 7.9%, from a closing price of $60.49 per share on October 29, 2024, to $55.73 per share on October 30, 2024.
What are my Rights?
If you purchased or otherwise acquired Chipotle securities, you may ask the Court no later than January 10, 2025, which is the first business day after 60 days from the date of the publication of notice of pendency of the action, to appoint you as Lead Plaintiff through counsel of your choice. To be a member of the Class, you need not take any action at this time. The ability to share in any potential future recovery is not dependent on serving as Lead Plaintiff.
If you incurred losses on your investments in Chipotle, you are encouraged to submit your information to speak with an attorney about your rights.
You can also contact:
Ross Shikowitz
ross@bfalaw.com
212-789-3619
All representation is on a contingency fee basis. Shareholders are not responsible for any court costs or expenses of litigation. The Firm will seek court approval for any potential fees and expenses.
Why Bleichmar Fonti & Auld LLP?
BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It was named among the Top 5 plaintiff law firms by ISS SCAS in 2023 and its attorneys have been named Titans of the Plaintiffs’ Bar by Law360 and SuperLawyers by Thompson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors (pending court approval), as well as $420 million from Teva Pharmaceutical Ind. Ltd.
Attorney advertising. Past results do not guarantee future outcomes.