Chipotle Receives Subpoena From DOJ Over Foodborne Illness Incidents

04/25/2019

In an SEC 10Q filing, Chipotle Mexican Grill (CMG) confirmed that it received a subpoena on April 18th requesting information related to foodborne infections acquired by customers dining in stores located in Los Angeles and Simi Valley, CA; Sterling, VA. and Boston MA. during 2017 and 2018.

 

According to the company, information on earlier outbreaks was provided, but the fourth request also involves an outbreak affecting 650 self-reported cases at a restaurant in Powell, OH in late July 2018. This event was attributed to ingestion of Clostridium perfringens toxin due to incorrect handling and thermal abuse of food. Apparently untrained store personnel were provided with correct procedures in a Company-wide stand-down session subsequent to the occurrence.

 

Chipotle acknowledged receiving the subpoena in their filing stating "It is not possible at this time to determine whether we will incur, or to reasonably estimate the amount of, any fines or penalties in connection with the investigation pursuant to which the subpoenas were issued," 

 

 

Shortly after the open on Thursday 25th shares of the company dropped from $711 to $668 to close at $678, down 4.5 percent, despite favorable Q1 top and bottom-line performance released after the bell on Wednesday afternoon. (See accompanying article on CMG Results in this edition).


















































































































































































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