Chipotle slammed with another lawsuit

inside chipotle

Adding insult to a string of recent injuries, Chipotle Mexican Grill was sued Friday for allegedly misleading investors about its food-safety protocols.

The suit, filed in a U.S District Court, claims that Chipotle failed to disclose that its food-safety safeguards were inadequate to protect employee and consumer health, Reuters says.

Chipotle faces additional lawsuits from multiple customers who contracted E.coli after eating at the chain, including two Washington women and an Oregon man, according to press reports. 

The burrito chain is also under federal investigation for possible criminal activity in the aftermath of a norovirus incident at a California restaurant.

Fallout from the chain’s recent food-safety crises has had a significant impact on its sales, dragging down comps 14.6 percent during the fourth quarter.

Restaurant Business has reached out to Chipotle for comment. 

Members help make our journalism possible. Become a Restaurant Business member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.

Multimedia

Exclusive Content

Leadership

Restaurants bring the industry's concerns to Congress

Neary 600 operators made their case to lawmakers as part of the National Restaurant Association’s Public Affairs Conference.

Financing

Proposed TGI Fridays sale is no home run, but has promise for both sides

The $220 million all-stock deal would get Fridays’ owner TriArtisan out of its decade-long investment and give the struggling chain a like-minded partner in franchisee Hostmore, experts say.

Financing

Podcast transcript: Virtual Dining Brands co-founder Robbie Earl

A Deeper Dive: What is the future of digital-only concepts? Earl discusses their work to ensure quality and why focusing on restaurant delivery works.

Trending

More from our partners