Chipotle Sued By Shareholders For Insider Trading

(RTTNews) - Several shareholders have filed a lawsuit against Chipotle Mexican Grill Inc. (CMG) executives alleging that they made "hundreds of millions of dollars through a corrupt stock incentive plan" and violated their fiduciary responsibilities towards investors.

The suit claims that Chipotle executives, including former CEO and Founder Steve Ellis, made millions after selling company shares "while the stock price was artificially inflated and before the fraud was exposed."

The suit claims that Ellis sold about 119,057 shares on inside information and made over $78.3 million.

According to the lawsuit, Chipotle executives acted on inside information and sold off millions of dollars in stock before the company's food safety scandal became public.

The lawsuit also alleges that Chipotle executives did not disclose to shareholders about the "subpar food safety standards adhered to at various Chipotle restaurants," which would have kept the market price of Chipotle's stock under control based on truthful and accurate information.