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Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Chipotle Mexican Grill, Inc. (CMG)

By: via Business Wire

Glancy Prongay & Murray LLP (“GPM”) reminds investors of the upcoming January 10, 2025 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Chipotle Mexican Grill, Inc. (“Chipotle” or the “Company”) (NYSE: CMG) common stock between February 8, 2024 and October 29, 2024, inclusive (the “Class Period”) and those who purchased Chipotle call options or sold put options during the class period.

If you suffered a loss on your Chipotle investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at www.glancylaw.com/cases/Chipotle-Mexican-Grill-Inc-1/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at shareholders@glancylaw.com to learn more about your rights.

On July 24, 2024, Chipotle held its second quarter 2024 earnings call, during which, the Company addressed “the portion concerns that [had] been brought up on social media,” and revealed that the third quarter of 2024 would see a higher cost of sales as a result of giving customers more generous portions.

On this news, Chipotle’s stock price fell $1.95, or 3.9%, over two consecutive trading days, to close at $49.83 per share on July 26, 2024, thereby injuring investors.

Then, on October 30, 2024, Business Insider published an article stating that “profit margins for the chain suffered last quarter because of a concerted effort to provide ‘consistent and generous portions’ in every order.”

On this news, Chipotle’s stock price fell $4.76, or 7.9%, to close at $55.73 per share on October 30, 2024, thereby injuring investors further.

The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Chipotle’s portion sizes were inconsistent and left many customers dissatisfied with the Company’s offerings; (2) in order to address the issue and retain customer loyalty, the Company would have to ensure more generous portion sizes, which would increase cost of sales; and (3) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.

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If you purchased or otherwise acquired Chipotle common stock during the Class Period, you may move the Court no later than January 10, 2025 to request appointment as lead plaintiff in this putative class action lawsuit. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to shareholders@glancylaw.com, or visit our website at www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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