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. 

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