Chipotle Accused Of Defrauding Investors Over Food Quality
NEW YORK — Chipotle’s legal woes in the wake of November’s E. coli outbreak just got even worse.
Susie Ong, an investor in the burrito chain, filed a securities complaint Friday in the U.S. District Court of the Southern District of New York in hopes of starting a class-action suit against the company, according to documents obtained by The Huffington Post.
“Their statements regarding quality control and quality of ingredients were demonstrably false and have posed a tremendous safety hazard to their patrons,” Jeremy A. Lieberman, the attorney who filed the complaint, told HuffPost by phone on Friday afternoon. “As a result, investors in the company suffered significant losses when these health concerns were raised by regulators.”
Chipotle spokesman Chris Arnold declined to comment.
This story is developing.