Normally, we don’t get too excited by the ambulance chasing crowd, as usually class action suits only enrich the lawyers that instigate them. When we are short a questionable stock which is run by, well, questionable management teams we love the Lawyer set to get involved and start investigating fraud and misdeeds. The latest “scam at this valuation” favorite short of ours is Chipotle Mexican Grill. We feel that Chipotle is worth around $100 a share and that hiring illegal aliens has greatly boosted the bottom line — talk about a payroll tax holiday! The SEC, as usual, has not looked into the allegations of CMG hiring under the table “authentic” Mexicans in their restaurants, but when one cockroach appears it means that there are thousands more ready to scatter once the lights get turned on — I think Steve Ells is a good manager, but greed is a tough habit to kick. CMG has skyrocketed from $100 to $270 but some of this may be the result of some type of severe fraudulent/aggressive accounting and cost cutting via breaking the law… As my stepdad likes to say “If someone will steal for you they will steal from you.” This is one of my favorite sayings and it relates almost perfectly to the naive Cramerican CMG stockholder…… Thanks to Fuqi and Fuqi for getting their hands dirty here — I would not be suprised if much more serious crimes were uncovered!
NEW YORK–(BUSINESS WIRE)– Faruqi & Faruqi, LLP, a leading New York securities firm, is investigating the Board of Directors and Officers of Chipotle Mexican Grill, Inc. (“Chipotle” or the “Company”) (NYSE:CMG – News). The investigation focuses on possible breaches of fiduciary duties by the Board of Directors and/or Officers of the Company in connection with allegations that the Company hired illegal immigrants.
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Specifically, following an inspection during 2010 by the U.S. Department of Homeland Security (“DHS”) of the work authorization documents of the Company’s restaurant employees in Minnesota, the Immigration and Customs Enforcement arm of DHS (“ICE”) issued to the Company a Notice of Suspect Documents identifying a large number of employees who, according to ICE, appeared not to be authorized to work in the U.S. The immigration probe resulted in the Company firing more than 400 hundred employees in Minnesota. The ICE’s investigation was subsequently expanded and in March, Chipotle fired at least 40 workers in Washington, D.C., after ICE collected documents for an audit in Virginia and Washington. In April 2011, the Company also received a notice from the office of the U.S. Attorney for the District of Columbia that it is conducting an investigation into these matters through its criminal division.
Faruqi & Faruqi, LLP is a national law firm which represents investors and individuals in class action and derivative litigation. The firm is focused on providing exemplary legal services in complex litigation in the areas of securities, shareholder, antitrust and consumer litigation, through all phases of litigation. The firm has an experienced trial team which has achieved significant victories on behalf of the firm’s clients.
If you own common stock in Chipotle and wish to obtain additional information, please visit us at http://www.faruqilaw.com/CMG or contact Beth A. Keller, Esq. either via email at bkeller@faruqilaw.com or by telephone at (877) 247-4292 or (212) 983-9330.
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Faruqi & Faruqi, LLP369 Lexington Avenue, 10th FloorNew York, NY 10017Attn: Beth A. Keller, Esq.bkeller@faruqilaw.comToll Free: 877-247-4292Phone: 212-983-9330
