On April 25, 2017, the Company revealed a data breach affecting its payment processing systems potentially affecting its customers and advised that customers “should closely monitor their payment card statements” for unauthorized charges and notify their bank if that occurred. The breach resulted in a class action lawsuit being filed against the Company by more than 100 financial institutions based on lost accounts, repayments and other expenses caused by Chipotle’s negligence in the breach, highlighting a 2015 decision by the Company to “not upgrade its terminals to EMV [chip card] technology, claiming that it would slow down customer lines” despite a prior breach that had cost the company approximately $4.3 million between 2004 and 2006.
On July 19, 2017, it was announced that the Company received a federal subpoena relating to a reported norovirus outbreak at one of its Virginia locations that left hundreds sickened, which follows a string of similar incidents involving the company dating back to 2015 and has resulted in the filing of a securities class action lawsuit against the Company.
KSF’s investigation is focusing on whether Chipotle’s officers and/or directors breached their fiduciary duties to its shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Chipotle shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850 or email KSF Managing Partner Lewis Kahn ([email protected]).
About Kahn Swick & Foti, LLC
KSF, whose partners include the Former Louisiana Attorney General Charles C. Foti, Jr., is a law firm focused on securities, antitrust and consumer class actions, along with merger & acquisition and breach of fiduciary litigation against publicly traded companies on behalf of shareholders. The firm has offices in New York, California and Louisiana.
To learn more about KSF, you may visit www.ksfcounsel.com.
Kahn Swick & Foti, LLCLewis Kahn, Managing Partner[email protected] 1-877-515-1850206 Covington St.Madisonville, LA 70447
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