Press release from Business Wire
Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Chipotle Mexican Grill, Inc.
Friday, August 17, 2012
Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Chipotle Mexican Grill, Inc.12:21 EDT Friday, August 17, 2012 SAN DIEGO (Business Wire) -- Robbins Geller Rudman & Dowd LLP (“Robbins Geller”) (http://www.rgrdlaw.com/cases/chipotle/) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the District of Colorado on behalf of purchasers of Chipotle Mexican Grill, Inc. (“Chipotle”) (NYSE:CMG) common stock during the period between February 1, 2012 and July 19, 2012 (the “Class Period”). If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Darren Robbins of Robbins Geller at 800-449-4900 or 619-231-1058, or via e-mail at email@example.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/chipotle/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The complaint charges Chipotle and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Chipotle develops and operates “fast-casual,” fresh Mexican food restaurants in the United States, Canada, the United Kingdom and France. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's business and prospects. As a result of defendants' false statements, Chipotle stock traded at artificially inflated prices during the Class Period, reaching a high of $440.40 per share on April 13, 2012. On July 19, 2012, Chipotle issued a press release announcing its second quarter 2012 earnings results, reporting disappointing revenue results and cautious guidance for the year. As a result of this news, Chipotle stock plunged $86.88 per share to close at $316.98 per share on July 20, 2012, a decline of 22% on volume of 9.8 million shares. This was the largest one-day stock decline in the Company's history. According to the complaint, the true facts, which were known by the defendants but concealed from the investing public during the Class Period, were as follows: (a) Chipotle's did not have the pricing power to implement price increases sufficient to offset rising food costs and, as a result, the Company's margins would be under pressure as Chipotle would be unable to pass these commodity costs off to the consumers; (b) demand for Chipotle was slowing due to the economy and increased competition and could not support the Company's aggressive 2012 earnings forecasts; and (c) Chipotle was experiencing a deceleration of growth as it was becoming a mature company. Plaintiff seeks to recover damages on behalf of all purchasers of Chipotle common stock during the Class Period (the “Class”). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. Robbins Geller represents U.S. and international institutional investors in contingency-based securities and corporate litigation. With nearly 200 lawyers in nine offices, the firm represents hundreds of public and multi-employer pension funds with combined assets under management in excess of $1.5 trillion. The firm has obtained the largest recoveries in history in six of the eight categories of shareholder class action settlements and has been ranked number one in the number of shareholder class action recoveries in MSCI's Top SCAS 50 every year since 2003. According to Cornerstone Research, the firm's recoveries have averaged 35% above the median for all firms over the past seven years (2005-2011). Please visit http://www.rgrdlaw.com for more information. Robbins Geller Rudman & Dowd LLPDarren Robbins, 800-449-4900 or firstname.lastname@example.org