Step 1
Unite with Fellow Investors
Step 2
Choose the Best Attorney
Step 3
Provide Documents
Step 4
Follow Case Progress
Step 5
Get Payout
CMG.US
id: 1386
Chipotle (CMG) Portion Misrepresentation Case
C.D. California
Court8:24-cv-02459
Case number02/08/2024
Class period Start10/29/2024
Class period End01/10/2025
Lead Plaintiff motion deadline- $CMG investors filed a lawsuit against Chipotle Mexican Grill, claiming the company misled them about offering consistent portion sizes and good value for its meals.
- Following public backlash and revelations in July 2024, $CMG dropped sharply, with declines totaling over 9% in two days.
Case Details:
From February 8 to October 29, 2024, Chipotle assured investors that it maintained competitive advantages with consistent and valuable meal portions.
However, starting in the spring of 2024, social media posts and viral critiques pointed out that portion sizes had become smaller and inconsistent.
This led to public backlash, damaging Chipotle's reputation.
In October 2024, Chipotle admitted it faced rising costs and operational issues related to fixing portion-size problems.
Following this announcement during an earnings report on October 30, 2024, $CMG dropped nearly 8%.
Based on these events, $CMG investors filed a claim against Chipotle, accusing the company of the following:
- It misled them about maintaining consistent portion sizes and food value.
- It understated the cost impact of operational adjustments to fix portion issues.
Investors believe Chipotle did not fully disclose the financial risks, including the costs of addressing portion-size problems.
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Financial Misrepresentation
Suspected Party
Management,
Investment Bank
Security Type
Stocks
Trade Direction
Long
Shock Event Date
03/26/2024
Filing date
11/11/2024
Lead Plaintiff Deadline
01/10/2025