Chipotle (CMG) Portion Misrepresentation Case

C.D. California

Court

8:24-cv-02459

Case number

02/08/2024

Class period Start

10/29/2024

Class period End

01/10/2025

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.
$CMG investors can join this case to be notified about potential recovery.
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

Chipotle (CMG) Portion Misrepresentation Case

Collecting participants…