Deadline Soon: Chipotle Mexican Grill, Inc. (CMG) Investors Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz About Securities Fraud Lawsuit

By: The Law Offices of Frank R. Cruz via Business Wire

January 08, 2025 at 12:00 PM EST

The Law Offices of Frank R. Cruz reminds investors of the upcoming January 10, 2025 deadline to participate as a lead plaintiff in the securities fraud class action lawsuit filed on behalf of investors who 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 ARE AN INVESTOR WHO LOST MONEY ON CHIPOTLE MEXICAN GRILL, INC. (CMG), CLICK HERE TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT.

What Happened?

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.

What Is The Lawsuit About?

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.

If you purchased or otherwise acquired Chipotle common stock between February 8, 2024 and October 29, 2024, the deadline to seek appointment as the lead plaintiff in the securities fraud class action is January 10, 2025.

Contact Us To Participate or Learn More:

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 us:

Frank R. Cruz

The Law Offices of Frank R. Cruz,

2121 Avenue of the Stars, Suite 800,

Century City, California 90067

Email us at: info@frankcruzlaw.com

Call us at: 310-914-5007

Visit our website at www.frankcruzlaw.com

Follow us for updates on Twitter: twitter.com/FRC_LAW

If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.

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

View source version on businesswire.com: https://www.businesswire.com/news/home/20250108922817/en/

Contacts

The Law Offices of Frank R. Cruz, Los Angeles

Frank R. Cruz, 310-914-5007

fcruz@frankcruzlaw.com

www.frankcruzlaw.com

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Deadline Soon: Chipotle Mexican Grill, Inc. (CMG) Investors Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz About Securities Fraud Lawsuit

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