Chipotle Reportedly Under Criminal Investigation Over Norovirus Outbreak

While the former thanks America’s farmers and ranchers for producing food for its stores and donates millions to support students in agriculture, the latter has continually spread false information about modern beef production, used fear and emotion to drive sales, and most recently has been slapped with plunging sales after an E. coli outbreak linked to its restaurants in October and November.

A Securities and Exchange Commission filing shows that the Denver-based chain is under criminal investigation for a norovirus outbreak traced to a Chipotle restaurant in the suburbs of Los Angeles. That’s not the case anymore after multiple outbreaks of E.coli and norovirus have sickened customers and brought the chain the type of press that drives sales to other restaurants.

Chipotle also reported its same-store sales fell by almost 15 percent in the quarter, and slashed its earnings estimates by almost a dollar per share.

In its regulatory filing Wednesday, the company said it could not determine or predict the amount of any “fines, penalties or further liabilities” it might face in connection with the federal investigation. He said that workers had closed and cleaned the restaurant, but did not notify his agency until after it reopened. Chipotle’s top management said that it will fully cooperate with the joint investigation. The investigation isn’t tied to the recent E. coli outbreak which resulted in people getting sick in nine states or the norovirus outbreak in Boston.

According to Doug Beach, a manager of the food program at Ventura County’s Environmental Health Division, Chipotle had been cooperative with the county’s investigation, which uncovered issues such as unclean equipment and employees without the necessary food handling permits.

The California outbreak happened in August at a restaurant in Simi Valley, California and affected almost 100 people.

Infected employees, however, are reportedly the most common causes for norovirus outbreaks at restaurants. The company spokesman’s only comment clarified that the subpoena was for the Simi Valley case.

In an attempt to rehabilitate its image, the company has apologized to its customers in full-page ads in dozens of newspapers around the country, and has vowed to step up food safety standards at its restaurants.

According to Chipotle, there was a 30 per cent drop in sales in December alone in 2015 and its stock has tumbled since news of the outbreaks began.

“I’m scratching my head about it”, he said.