Chipotle stockholders have filed a lawsuit against the Mexican restaurant chain alleging that company executives awarded themselves “hundreds of millions” of dollars just before stock prices tanked last year in response to an E. coli food poisoning outbreak.
Free Confidential Lawsuit Evaluation: If you or a loved one developed symptoms of food poisoning after eating at Chipotle, you should contact our law firm immediately. You may be entitled to compensation by filing a suit and our lawyers can help.
What’s the Problem?
June 20, 2016 – The complaint, filed in Denver District Court, alleges that Chipotle executives sold millions in stock while acting on insider information prior to an E. coli outbreak that sickened more than 50 people in 9 states. The suit also claims that Chipotle repurchased the stock at an inflated price, costing shareholders an extra $84 million.
The most serious allegation raised in the complaint is that Chipotle’s co-CEO Marty Moran sold $107.7 million worth of company stock at the inflated price, based on inside information that the stock would soon fall. Additionally, the suit claims that Chipotle’s founder and other co-CEO Steve Ells sold shares worth $78.3 million during calendar year 2015.
Finally, there’s an allegation that Chipotle executives knew that the company’s food safety standards were inadequate, but did nothing about it to ensure that the stock price remained high.
“Beginning on February 4, 2015 and continuing through the date of the filing of this Complaint,” the lawsuit reads, “the investing public was under a false impression of the Company’s commitment to and control of food safety at Chipotle restaurants, compliance with [health] authority regulations.”
The company’s stock has plunged since last October, when reports surfaced of people getting sick after eating at its restaurants. E. coli outbreaks forced the closure of 43 Chipotle stores in the northwest, and another 143 people developed a norovirus after eating at a Boston location last December. Since then, Chipotle’s stock has been devalued by almost 50%.
Do I Have a Chipotle Lawsuit?
The Food Poisoning Litigation Group at our law firm is an experienced team of trial lawyers that focus on the representation of plaintiffs in Chipotle lawsuits. We are handling individual litigation nationwide and currently investigating potential settlements in all 50 states.
Free Confidential Case Evaluation: Again, if you or a loved one got sick after eating at Chipotle, you should contact our law firm immediately. You may be entitled to a settlement by filing a suit and we can help.