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

Financing

How Popeyes changed the chicken business

How did a once-struggling, regional bone-in chicken chain overtake KFC, the formerly dominant player in the U.S. market? With a fixation on sandwiches and many more new restaurants.

Financing

Get ready for a summertime value war

The Bottom Line: With more customers opting to eat at home, rather than at restaurants, more fast-food chains will start pushing value this summer.

Food

Inside Chili's quest to craft a value-priced burger that could take on McDonald's

Behind the Menu: How the casual-dining chain smashes expectations with a winning combination of familiarity and price with its new Big Smasher burger.

Trending

More from our partners