NEW YORK--(BUSINESS WIRE)--Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Chipotle Mexican Grill, Inc. (“Chipotle” or the “Company”) (NYSE: CMG) and reminds investors of the January 10, 2025 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) Chipotle’s portion sizes were inconsistent and left many customers dissatisfied with the Company’s offerings; (2) in order to address the issue and retain customer loyalty, the Company would have to ensure more generous portion sizes, which would increase cost of sales; and (3) as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On October 29, 2024, after the market closed, Marketwatch published an article entitled “Chipotle’s new CEO maintains focus on faster service as sales fall short.” It stated that “[s]hares of Chipotle Mexican Grill Inc. fell after hours on Tuesday, after the Mexican fast-casual chain reported weaker-than-expected quarterly sales trends and pointed to an uptick in costs from trying to offer more consistent portion sizes.”
On this news, Chipotle stock fell 7.8% on October 30, 2024.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Chipotle’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the Chipotle Mexican Grill class action, go to www.faruqilaw.com/CMG or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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