The Chain Gang

Chipotle Sued Again, This Time for Misleading Investors About Food Safety

More problems.
More problems. Photo: Joe Raedle/Getty Images

Shareholders just added more insult to injury for beleaguered Chipotle: A group filed a lawsuit Friday arguing the burrito chain misled them about the food-safety scandal. According to the suit, Chipotle failed to disclose that “its quality controls were inadequate to safeguard consumer and employee health,” information that presumably would’ve convinced at least a few to jump ship before shares started their epic plunge down to the lowest value in over two years. The suit is seeking damages for anybody who owned Chipotle shares between now and February of last year, back when the chain’s biggest crisis involved calorie counts.

Hard to say what will come of the suit, but, regardless, it’s one more woe for the company in a list that already includes multiple other lawsuits, a serious 30 percent drop in comparable store sales for the month of December, a pending criminal investigation, and an ever-growing number of social-media pics showing empty stores:


Chipotle Sued for Misleading Investors