Chipotle Hit With Another Lawsuit

Off the heels of making headlines for foodborne illnesses linked to the restaurant, Chipotle Mexican Grill has now been hit with another lawsuit.

Chipotle was sued on Friday for allegedly misleading its investors about food safety controls, reported Reuters.

In the lawsuit, it states that the restaurant failed to disclose that its “quality controls were inadequate to safeguard consumer and employee health.”

The restaurant did not comment to Reuters, which also reported that the company’s stock price has dipped drastically since the numerous outbreaks were reported to the public.

Last week, it was reported that Chipotle faces a criminal investigation in connection with a norovirus outbreak at one of its California restaurants.

The company has closed stores across the country in the wake of norovirus and E. coli outbreaks at several locations nationwide that have sickened hundreds.

A Boston-area Chipotle was shut down in December after roughly 140 people were sickened after eating at the Cleveland Circle location, many of them Boston College students.

A subpoena demanding a wide range of documents relating to a norovirus outbreak at a Simi Valley, California, store was received last month, the Associated Press reported.

Illnesses linked to Chipotle food have also been reported in the Pacific Northwest and across the Northeast, including in Maryland, New York and New Jersey.

The Chipotle-linked outbreaks, which have been covered heavily in the national press, have led to a 30 percent drop in sales in December, according to the AP.

Comps have sunk 14.6 percent during the fourth quarter, showing a significant impact on sales, reported Restaurant Business.