It’s been rough for Denver-based Chipotle Mexican Grill. The company has been rocked by food quality scandals over the past few years, and investors are not pleased. Will the company face ruin as more lawsuits start to pile up?
Is Chipotle Lying about the Safety of Its Food?
Right now, Chipotle is dealing with a norovirus outbreak at one of its restaurants in Virginia, and a vermin problem in a Dallas area location. Both incidents have the company busy trying to clean up these messes while keeping the public from losing faith in their food. However, the shareholders seem skeptical of whatever solutions the company can come up with.
In U.S. District Court of Colorado, investors claim that Chipotle has deceived the public and shareholders as to the safety of its food. The suit alleges that this caused the company’s stock to inflate and then burst when new food safety stories became public. This may have caused investors a serious loss, but this investor lawsuit isn’t the only case Chipotle is dealing with right now.
A class action lawsuit filed by a former apprentice at a Chipotle restaurant claims that the company neglected to pay her overtime. This is because the company classifies members of the apprentice program as managers—salaried employees that don’t get overtime. However, the employee claims that she did not have managerial duties and was often working building burritos. She claims that this means she wasn’t a manager, and that she should have been paid at an hourly rate with overtime.
If Chipotle loses this class action, it could wind up owing employees all across the country extra overtime pay. Add that to the other struggles the company faces and Chipotle could have a tough time making its financial obligations this year.
Brought to you by the personal injury attorneys at Metier Law Firm—we are there in the tough times, when you need help the most.