Investors Target Chipotle Over Bloated Stock Price

Law360, New York (August 17, 2012, 1:01 PM EDT) -- Investors in Chipotle Mexican Grill Inc. served up a proposed class action in Colorado federal court on Thursday alleging the popular restaurant chain misled shareholders about its rising commodity prices and slowing growth before a double-digit plunge in company stock price.

Chipotle boasted to investors and analysts that it could serve up "food with integrity" at a heavy premium, but never disclosed that rising commodity costs and declining demand would hurt the company's second-quarter earnings, the shareholder suit claimed.

"Demand for Chipotle was slowing and could...
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