Chipotle Mexican Grill was sued by shareholders Monday for hiding how many of its restaurants were closed. overlooking portionsIt forces the chain to spend more on materials and hurts stock prices.

In a proposed class action lawsuit filed in federal court in Santa Ana, California, shareholders said Chipotle failed to account for growing unhappiness among customers with inconsistent portion sizes for burritos and rice bowls.

As customers said the truth came out Expressed horror on TikTok and other social mediaChipotle has been prompted by CEO Scott Boatwright and his predecessor, Brian Niccol, to re-emphasize what he calls “generous portions” at its more than 3,600 restaurants.

The costs to repair the damage hurt margins, causing Chipotle’s stock price to fall after the company reported second- and third-quarter results, according to the complaint. The decline on October 30 wiped out approximately $6.5 billion in market value.

The lawsuit seeks unspecified damages for those who purchased Chipotle stock and options between February 8 and October 29, 2024.

Chipotle did not immediately respond to requests for comment.

The lawsuit was filed just hours after the Newport Beach, Calif.-based company removed the “interim” tag from Boatwright’s job title.

Niccol resigns as CEO I will accept the same job at Starbucks in August.

Chipotle’s stock price has increased more than eightfold during Niccol’s nearly 6-1/2 years of management.

Niccol and former Chief Financial Officer Jack Hartung are also named as defendants in Monday’s lawsuit. Hartung became Chipotle’s president and chief strategy officer on October 1.

The case is Stradford v. Chipotle Mexican Grill Inc et al., U.S. District Court, Central District of California, No. It is 24-02459.