SOURCE: Izard Nobel LLP

August 28, 2012 15:46 ET

Izard Nobel LLP Announces Class Action Lawsuit Against Chipotle Mexican Grill, Inc.

WEST HARTFORD, CT--(Marketwire - Aug 28, 2012) -  The law firm of Izard Nobel LLP, which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Colorado on behalf of purchasers of the common stock of Chipotle Mexican Grill, Inc. ("Chipotle" or the "Company") (NYSE: CMG) between February 1, 2012 and July 19, 2012, inclusive (the "Class Period").

The Complaint alleges that Chipotle and certain of its officers and directors violated the federal securities laws. The Complaint alleges that defendants issued misleading statements regarding the Company's business and prospects. Specifically, defendants failed to disclose the following: (i) Chipotle 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; (ii) demand for Chipotle was slowing due to the economy and increased competition and could not support the Company's aggressive 2012 earnings forecasts; and (iii) Chipotle was experiencing a deceleration of growth as it was becoming a mature company.

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. On this news, Chipotle stock fell $86.88 to close at $316.98 per share on July 20, 2012, a decline of 22%.

If you are a member of the class, you may, no later than October 16, 2012, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

While Izard Nobel LLP has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, and your rights, visit: www.izardnobel.com/chipotle/, or contact Izard Nobel LLP toll-free: (800)797-5499, or by e-mail: firm@izardnobel.com. For more information about class action cases in general, please visit our website: www.izardnobel.com.

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