A Chipotle shareholder is suing the company, claiming they faced “significant losses” due to the alleged portion-size reductions that caused a frenzy over social media.
On Monday, a proposed class-action lawsuit was filed on behalf of Michael Stradford, who claimed that the company had “understated how difficult it would be to compete” within the highly competitive industry as it “provided customers with highly inconsistent (and in the view of some customers, lacking) portion sizes.”
“If guests do not agree with the overall value proposition of our menu, our sales could be adversely affected, which would negatively impact our results of operations,” the suit stated.
Former CEO Brian Niccol, who stepped down in August to take over at Starbucks, and former CFO Jack Hartung are named as defendants in the lawsuit.
CHIPOTLE CEO ADDRESSES BURRITO BOWL PORTION SIZES AFTER BACKLASH
The suit argued that customer dissatisfaction had not been made clear until this past spring, when people “began to air grievances on social …