Former United States Securities and Exchange Commission attorney Willie Briscoe, founder of The Briscoe Law Firm, PLLC, and the securities litigation firm of Powers Taylor, LLP announce that the firms are investigating legal claims against the officers and Board of Directors of Chipotle Mexican Grill, Inc. (“Chipotle” or “CMG”) (NYSE: CMG) related to potential securities violations between February 1, 2012 and July 19, 2012 (the “Class Period”).
“Recent revelations about alleged improper business practices and procedures regarding key aspects of Chipotle’s business and other misleading financial statements have prompted the firms to investigate possible breaches of fiduciary duties and other violations of state law by Chipotle’s officers and directors. Based on our investigation, we are prepared to pursue litigation to preserve the company and the value of Chipotle stock for all shareholders,” said shareholder rights attorney Willie Briscoe.
If you are an affected investor and you want to learn more about the lawsuit or join the action, contact Patrick Powers at Powers Taylor, LLP, toll free (877) 728-9607, via e-mail at email@example.com, or Willie Briscoe at The Briscoe Law Firm, PLLC, (214) 706-9314, or via email at WBriscoe@TheBriscoeLawFirm.com. There is no cost or fee to you.
In a recently filed federal class action complaint, Chipotle and certain of its officers and directors were charged with violating the Securities Exchange Act of 1934. Specifically, the complaint alleges that during the Class Period, the defendants misrepresented or failed to disclose: (a) that Chipotle’s margins would be under pressure because they did not have the pricing power to implement price increases; (b) that demand for Chipotle was slowing and could not support aggressive earnings forecast and (c) Chipotle was experiencing a growth deceleration. After these revelations became known, the price of Chipotle shares dropped dramatically by approximately 28%.