Chipotle Mexican Grill, Inc. Investor Investigation over Criminal Investigation by Government

June 13, 2011 - PRLog -- After a media report cited a person familiar with the matter that the federal government has begun a criminal investigation into whether Chipotle Mexican Grill Inc. has knowingly hired illegal immigrants at its restaurants an investigation on behalf of investors of Chipotle Mexican Grill, Inc.  concerning possible breaches of fiduciary duties by certain officers and directors at Chipotle Mexican Grill, Inc. or others was announced.

If you purchased shares of Chipotle Mexican Grill, Inc. (NYSE CMG), and/or if you have information relating the investigation including former employees and/or whistleblowers, you have certain options and you should contact the Shareholders Foundation by email mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm 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.

Chipotle Mexican Grill, Inc. has performed well in the past. Chipotle Mexican Grill’s annual Revenue rose from $1.085billion in 2007 to $1.835.92million in 2010. Its Net Income increased from $70.56million in 07 to $178.98million in 2010. Its first quarter Revenue increased from $409.69million for the first quarter in 2010 to $509.38million for the first quarter in 2011. Its quarterly Net Income rose from $37.85million for the first quarter in 2010 to a quarterly Net Income of $46.38million for the first quarter in 2011.
Shares of Chipotle Mexican Grill, Inc. (Public, NYSE-CMG) increased from as low as $39.30 per share in November 08 to as high as $292.94 per share in May 2011.

However, Chipotle Mexican Grill, Inc disclosed in its filing with the SEC that following an inspection during 2010 by the U.S. Department of Homeland Security (“DHS”) of the work authorization documents of our restaurant employees in Minnesota, the Immigration and Customs Enforcement arm of DHS (“ICE”), issued to Chipotle Mexican Grill, Inc 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.

Chipotle Mexican Grill, Inc said it approached each of the named employees to explain ICE’s determination and afforded each employee an opportunity to confirm the validity of their original work eligibility documents, or provide valid work eligibility documents.

In December 2010, Chipotle Mexican Grill said it was also requested by DHS to provide the work authorization documents of our restaurant employees in the District of Columbia and Virginia.

After Chipotle Mexican Grill received its first-ever ICE inspection notice late last year it fired hundreds of workers.

In April 2011, Chipotle Mexican Grill said, it also received 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.

Chipotle Mexican Grill recently fired 40 employees at two Washington, D.C restaurants.

Shares of Chipotle Mexican Grill, Inc.  recently dropped from over $292 in May to slightly above $272 on June 10.

Those who purchased shares of Chipotle Mexican Grill, Inc. (Public, NYSE-CMG), and/or those who have information relating the investigation including former employees and/or whistleblowers, have certain options and should contact the Shareholders Foundation by email mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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