News Chipotle’s Mounting Woes Now Include a Federal Criminal Investigation

Discussion in 'The Howard Stern Show' started by dawg, Jan 13, 2016.

  1. dawg

    dawg In The Dog House Staff Member

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    WireAP_6de7f49e5a0b44c8b1610210007abeca_16x9_1600.jpg

    Chipotle said it has been subpoenaed as part of a federal criminal investigation and that sales plummeted 30 percent in December after a series of food scares at its restaurants.

    The company said in a regulatory filing it was asked to produce a broad range of documents tied to a norovirus outbreak this summer at its restaurant in Simi Valley, California, but declined to provide further details.

    It said the investigation does not involve a more recent E. coli outbreak tied to its restaurants or a separate norovirus outbreak in Boston.

    The investigation is being conducted by the U.S. Attorney's Office for the Central District of California with the Food and Drug Administration's Office of Criminal Investigations, according to a filing with the Securities and Exchange Commission Wednesday.

    Representatives for the U.S. Attorney's office and the FDA declined to comment.

    The disclosure of the investigation comes as Chipotle Mexican Grill Inc. reels from E. coli outbreaks in late October and November, which were followed by the sickening of customers at a restaurant in Boston in early December. Those cases received far more national media attention than the California incident, and the company's sales have since plunged.

    Sales fell 14.6 percent in the fourth quarter, marking the first decline for the Denver company since it went public in 2006.

    Last month, Chipotle also said it could no longer reasonably predict sales trends given the food scares and retracted its forecast for 2016.

    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.

    A Chipotle spokesman, Chris Arnold, said the company intends to cooperate fully with the investigation.

    Doug Beach, a manager of the food program at Ventura County's Environmental Health Division, said the FDA approached the county about its local investigation in September or October, then followed up with a phone call with the U.S. Attorney's office in October or November.

    Beach said the U.S. Attorney's office then requested the county's records on the Chipotle case.

    "That was a first for us," Beach said in a phone interview.

    Beach also noted that Chipotle had not contacted the county about the illnesses until Saturday Aug. 21, after it had shut down the restaurant in Simi Valley for sanitation and reopened it. Beach said he believed the company was aware of sick employees the previous Tuesday.

    According to a county inspection report, the area manager for Chipotle said the company got its first customer complaint about an illness on Aug. 20.

    The emergence of a criminal investigation after a norovirus outbreak is unusual, said Bill Marler, a food safety lawyer representing Chipotle customers who were sickened in Simi Valley.

    Marler said he didn't understand why the U.S. Attorney's office would have jurisdiction over an outbreak that was caused by a sick worker at a single restaurant. He noted that the FDA would normally not get involved in such cases.

    "I'm scratching my head about it," he said.

    Stuart Pape, an attorney at Polsinelli who specializes in food regulatory matters, noted Chipotle is under heightened scrutiny as a result of its string of food scares.

    "They've got the FDA all over them, they've got the CDC all over them, and now they've got the Justice Department all over them," Pape said.

    To rehabilitate its image, Chipotle has taken out full-page ads apologizing to customers in dozens of newspapers around the country. It also vowed changes to step up food safety at its restaurants, in part by tweaking its cooking methods and increasing testing of meat and produce.

    http://abcnews.go.com/Business/wireStory/criminal-investigation-underway-chipotle-36115506
     
  2. Mark Mayonnaise

    Mark Mayonnaise You look like a tree! VIP

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    Fuck me I love Chipotle


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  3. DinnerSocks

    DinnerSocks Well-Known Member

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    [​IMG]
     
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  4. face palm

    face palm Well-Known Member

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    another disgruntled employee
     
  5. stash

    stash 2017 Kimbra of All Media VIP

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    Great, now that I dont want to go there anymore the lines are finally shorter.
     
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  6. Tickle Shits

    Tickle Shits Special Needs Typist. Gold

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    On all of the investment sites they call it Shitpotle.. I giggle...
     
  7. reno

    reno VIP Extreme Gold

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    That looks good but not worth getting E. Coli from.
     
  8. fieldingmellish

    fieldingmellish Well-Known Member

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    this bums me out. I love their food but I admit i have been reticent to go back since these stories broke. #FML
     
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  9. SlowAdam

    SlowAdam misunderstood/forgotten wackpacker

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    this

    i live near the one in boston that had the break out. it was closed for like two weeks to clean, sanitize, whatever, then re-opened. everytime i drive by now it is empty.

    edit: i figured they would have just closed that location and re-opened it somewhere else nearby to get a fresh start

    edit2: stock has been nosediving badly
     
  10. PI Nate

    PI Nate Disenfranchised since 1984... Gold

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    Ugh, horrible. It looks like someone had it an hour ago.
     
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  11. Irish Joe

    Irish Joe Well-Known Member

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    I feel like people who still eat Mexican food after literally every Mexican restaurant chain has been infected with E.coli at some point deserves to die from food borne illness.
     
  12. SlinkyNeckStern

    SlinkyNeckStern High Pitch Mike Lookalike

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    You gotta wonder what retards are running this company. Hey you stupid fucks, just buy a live read on the Stern show. Voila. Customers back. Stock soaring. Problems solved. Howard will do for you what he did for Cock Sox and Fresh Balls.


    It's not complicated.
     
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  13. HS Cult Leader

    HS Cult Leader Elite Member Gold

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    Fuck them!


    After watching the smug founder on that NBC show, five years ago, judging people that wanted to start a fast food restaurant. Later it turned out, after this black guy won with a BBQ/Soul food restaurant, the Chitpotle people came in and took over all operations of his 3 restaurants. They overruled many of his winning ideas and changed everything that drove all the customers away, and then quickly shut down the restaurants one after another and the guy stayed with NOTHING.


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  14. stanggirl

    stanggirl There's no replacement for displacement VIP

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    I love Chipotle....and back in December, I went into one out on the Island. I was like..the line is short and what's the odds of me getting sick?

    Would you fucking believe the next day I was out of commission# Missed 2 days of work.

    But the thing is..I didn't have E coli infection symptoms. I puked and had a high fever. Probably wasn't related to Chipotle, but now I won't go back for a long time
     
  15. captbill

    captbill Well-Known Member

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    You don't want to know how I describe pizza.
     
  16. SouthernListen

    SouthernListen I don't follow the crowd. Sorry about that. VIP

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    If $8/hour employees are making it, better have it cooked as fuck.
     
  17. Rob0729

    Rob0729 Well-Known Member

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    It's funny that there are two far superior local burrito chains within walking distance of that restaurant. They have picked up a lot of Chipotle's business.
     
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  18. fieldingmellish

    fieldingmellish Well-Known Member

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    Yeah, it's silly really, because honestly the chances of getting sick from any other fast food type place are probably just as high if not higher, Chipotle is just in the crosshairs right now. There's a place on the east coast that is like a Chipotle for Greek food (blanking on the name) just tried it at an airport a few weeks ago, shit was bomb
     
  19. Pickle Jar

    Pickle Jar Well-Known Member

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    Someone shit and didn't wash their hands.
     
  20. SlowAdam

    SlowAdam misunderstood/forgotten wackpacker

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    Anna's and Boco?

    That Boco or whatever it's called place right next door was there first, crazy chipotle moved right in and somehow they didn't get driven out of business. good for them. i've been to anna's. pino's pizza ftw