Houston Chronicle

Chipotle customer illnesses prove lawsuit magnet

- By Kartikay Mehrotra BLOOMBERG NEWS

Chipotle Mexican Grill is facing another class action by a disgruntle­d shareholde­r over its alleged inability to keep its restaurant­s clean, a further hurdle for a company still trying to regain consumer and investor confidence after a food scare two years ago.

The latest complaint follows Tuesday’s revelation that one of the burrito chain’s Virginia stores had temporaril­y closed because of a suspected norovirus outbreak and Wednesday’s media reports about Dallas customers complainin­g of rodents dropping from the ceiling.

Chipotle in March defeated a similar lawsuit brought by investors over stock price drops after several food-borne illness outbreaks in 2015 were traced to its restaurant­s, with a judge concluding that the case was “long on text but it is short on adequately­pleaded claims.” But as recently as May, the company was hit with another in a series of product-injury suits filed by customers claiming they were sickened two years ago.

The return of negative headlines has tarred what was supposed to be a marketing coup for the company, which rolled out a new campaign on Wednesday featuring RZA of the Wu-Tang Clan to tout the quality of the chain’s ingredient­s. Instead, investors have focused on the mounting number of suspected norovirus cases.

In the case filed Thursday, shareholde­r Elizabeth Kelley said the Coloradoba­sed company made misleading statements to bolster confidence that it had resolved the health and safety troubles from 2015, when it was forced to close all its U.S. stores after hundreds of consumers got sick.

Chipotle didn’t immediatel­y respond to a request for comment.

Chipotle’s shares have plunged 19 percent during the 17½-month period covered by the lawsuit.

Newspapers in English

Newspapers from United States