The complaint alleges that Chipotle 'understated' diners' dissatisfaction with 'highly inconsistent (and in the view of some customers, lacking) portion sizes' in its risk disclosures.
In a May interview, CEO Brian Niccol claimed that portion sizes had not gotten smaller, stating, 'it's kind of who we are,' despite evidence and customer complaints to the contrary.
Following customer grievances that escalated on social media, a TikTok video by content creator Keith Lee highlighting skimpy portion sizes garnered 19.4 million views, illustrating the backlash.
Shareholders are suing Chipotle, claiming the company was dismissive of customer outrage regarding portion sizes that negatively impacted profitability and led to a decline in share prices.
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