Chipotle Beats Investor Portion Size, Social Media Backlash Suit

Chipotle Mexican Grill Inc. defeated allegations the restaurant chain and executives defrauded investors by denying shrinking portion sizes as customer accusations swirled on social media.

References to “viral criticism” online of portion sizes weren’t sufficient to allege executives’ statements denying reductions were false, Judge Sherilyn Peace Garnett said. The investor leading the case didn’t identify when an inventory requirement regarding portions kicked in to support claims the fast-casual chain reduced their sizes while saying otherwise.

Low-level employee accounts amounted to hearsay about alleged instructions to shrink portion sizes, the US District Court for the Central District of California judge said. ...