Mexican fast food chain Chipotle was sued Friday for allegedly failing to disclose flawed quality controls to investors, after an outbreak of E.coli was linked to the firm’s restaurants.
The company was sued for allegedly failing to disclose to investors that its “quality controls were inadequate to safeguard consumer and employee health,” according to a copy of the complaint obtained by Reuters. The quality concerns have caused Chipotle stock to plummet, the lawsuit alleges, and therefore investors who bought stock between February 2015 and January 2016 are seeking damages. Shares are down 35% since the end of October.
Chipotle declined to comment to TIME.
At least 50 people in nine states have been sickened from a E. coli outbreak linked to Chipotle restaurants late last year. Sales were down 30% in December and Chipotle is also the subject of a federal criminal investigation relating to a norovirus outbreak in California last year.
- Here’s How Effective the Original Vaccines Are Against Omicron
- The Promise—And Possible Perils—of Editing What We Say Online
- How Trump Survived Decades of Legal Trouble: Deny, Deflect, Delay, and Don't Put Anything in Writing
- Flint Is Still Shaken by its Water Crisis—and Residents Are Experiencing Long-Term Mental-Health Issues
- A Beer Shortage Is Brewing. A Volcano Is Partly to Blame
- How Fasting Can—and Can't—Improve Gut Health
- Cities Keep Enforcing Curfews for Teens, Despite Evidence They Don't Stop Crime
- Joe Manchin’s Red Tape Reform Could Supercharge Renewable Energy in the U.S.
- Column: We Should Talk More About What a Brilliant Actor Marilyn Monroe Was
