A Chipotle Mexican Grill shareholder has sued the company and its executives, accusing the Denver-based restaurant chain of misleading investors about its food-safety and quality control measures.
Susie Ong filed a claim Friday in U.S. District Court in Manhattan seeking class-action status. She accuses the company and co-CEOs and Monty Moran of making “materially false and misleading statements” and failing to report that “quality controls were not in compliance with applicable consumer and workplace safety regulations.” The filing also alleges that Chipotle’s “quality controls were inadequate to safeguard consumer and employee health.”
DOCUMENT:
Outbreaks of norovirus, salmonella and E. coli linked to some of the company’s 2,000 restaurants have pummeled Chipotle’s stock. Shares in the company have dropped 45.5 percent since hitting a 52-week high Aug. 5. Shares closed at $413.29 Friday.
The company has lost nearly $10 billion in market value since the first cases of illness were reported during the week of Aug. 18.
for an outbreak of norovirus that week that has been linked to a Simi Valley, Calif., store.
The claim seeks damages on behalf of investors who bought shares between February 2015 and January 2016.
The lawsuit was first reported by .
