On April 21, 2020, Chipotle Mexican Grill, Inc. (Chipotle) and the U.S. Department of Justice (DOJ) entered into a three-year deferred prosecution agreement (DPA) in connection with norovirus and Clostridium perfringens outbreaks that occurred between August 2015 and July 2018. Chipotle agreed to pay $25 million in criminal fines and implement a number of systematic changes to its food safety procedures. Below we provide the facts of the case, the terms of the agreement, and key takeaways.

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Photo of Douglas Fellman Douglas Fellman

Partner, Washington, D.C.

For more than 25 years, Douglas Fellman has represented public and private companies, boards of directors, board committees, and individual officers and directors regarding government and internal investigations, corporate governance matters, and “sticky issues” that occasionally arise at even the…

Partner, Washington, D.C.

For more than 25 years, Douglas Fellman has represented public and private companies, boards of directors, board committees, and individual officers and directors regarding government and internal investigations, corporate governance matters, and “sticky issues” that occasionally arise at even the best of companies.

While these matters can be among the most consequential and sensitive for his clients, Doug is known for his sound judgment and strategic thinking, business acumen and practicality, and for the sense of calm and discretion that he brings to the representations he leads.

Doug has represented clients in connection with civil, criminal, and administrative investigations and other proceedings involving the U.S. Department of Justice, Securities and Exchange Commission, and other federal and state departments and agencies, often involving cross-border and other multi-jurisdiction or parallel proceedings.

As Doug works with and defends clients, he often advises company senior management and boards of directors on matters of corporate governance, officer and director fiduciary duty, and interactions with outside auditors and other constituencies, including in the context of current or possible future strategic transactions.

Doug regularly represents clients in enforcement matters involving whistleblower complaints and other alleged compliance exceptions, financial restatements, accounting irregularities, insider trading, and the Foreign Corrupt Practices Act (FCPA). He also has comprehensive knowledge of the Food Drug and Cosmetic Act (with extensive experience representing clients in the food industry in criminal and other enforcement investigations), as well as international trade laws and regulations involving the Commerce, Treasury, and State Departments, government contacts and related suspension and debarment issues, and many other regulatory frameworks. In addition, Doug has successfully represented public companies in matters involving the NYSE, NASDAQ, FINRA, the CBOE, and other regulatory bodies.

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Photo of Maile Hermida Maile Hermida

Partner, Washington, D.C.

Maile Gradison Hermida represents all segments of the food industry and their trade associations. She has a keen understanding of the issues affecting the industry, from product development through production, distribution, and retail sale. Her core practice involves helping companies…

Partner, Washington, D.C.

Maile Gradison Hermida represents all segments of the food industry and their trade associations. She has a keen understanding of the issues affecting the industry, from product development through production, distribution, and retail sale. Her core practice involves helping companies ensure they are in compliance with regulations from federal agencies such as the Food and Drug Administration (FDA) and U.S. Department of Agriculture. Maile also provides strategic advice on public policy issues, frequently involving agency rulemakings.

Maile has considerable experience with the FDA Food Safety Modernization Act (FSMA), having worked with numerous companies and trade associations on all aspects of the law since the day it was signed. She translates her in-depth knowledge of FSMA into practical solutions for companies working on implementation strategies. She also is a Preventive Controls Qualified Individual (PCQI), as well as a Food Safety Preventive Controls Alliance Lead Instructor for the PCQI training.

Additionally, Maile assists companies with matters involving regulatory enforcement. She helps clients navigate product recalls; government inspections; and other enforcement actions, such as Warning Letters and import detentions. Maile also advises clients on the development of label and advertising claims, as well as labeling requirements for foods and dietary supplements.

Maile is a frequent speaker and contributor to industry publications. Prior to joining Hogan Lovells, she served as a judicial clerk to the Honorable Charles F. Lettow of the U.S. Court of Federal Claims. Maile graduated with high honors from The George Washington University Law School, where she served as executive editor of The George Washington Law Review.

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Photo of David I. Sharfstein David I. Sharfstein

Counsel, Washington, D.C. and Baltimore

David draws upon his combined experience as a Trial Attorney and Assistant U.S. Attorney at the DOJ to pragmatically guide clients through their most sensitive matters, including high stakes investigations, enforcement actions, and litigation.

David’s practice covers a…

Counsel, Washington, D.C. and Baltimore

David draws upon his combined experience as a Trial Attorney and Assistant U.S. Attorney at the DOJ to pragmatically guide clients through their most sensitive matters, including high stakes investigations, enforcement actions, and litigation.

David’s practice covers a wide cross section of the law, including conducting internal investigations and representing both corporates and individuals in complex criminal and civil litigation. He skillfully represents clients facing investigations and enforcement actions brought by key domestic enforcement agencies, often in cross-border matters. David has extensive experience with matters involving the Foreign Corrupt Practices Act (FCPA), the Food, Drug, and Cosmetic Act (FDCA), and the False Claims Act (FCA). David also provides unique insight into matters involving tax controversies, including criminal investigations. He regularly counsels clients on a range of compliance issues.

David is well versed in the consumer food and beverage industry sector, having advised household names in some of their most significant matters, including those related to FDA inspections and criminal matters involving insanitary conditions and adulterated product.

David also represents clients facing scrutiny under U.S. export control and sanctions laws, and often involving the Department of Commerce’s Bureau of Industry and Security (BIS), and the Department of Treasury’s Office of Foreign Assets Control (OFAC).

Before joining Hogan Lovells, David served with distinction at the DOJ Tax Division and the U.S. Attorney’s Office for the District of Maryland, where he received the U.S. Attorney’s Award for Excellence in Prosecution of Fraud and also the award for Excellence in Prosecution of Organized Crime.  David also served as the office’s Election Fraud Coordinator.

David clerked for the Honorable Richard D. Bennett of the U.S. District Court for the District of Maryland.

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Photo of Mary Lancaster Mary Lancaster

Associate, Washington, D.C.

Mary Lancaster provides practical guidance on complex regulatory issues to help food and beverage companies in all segments of the industry achieve their business goals.

Mary advises clients on Food and Drug Administration (FDA) and United States Department of Agriculture…

Associate, Washington, D.C.

Mary Lancaster provides practical guidance on complex regulatory issues to help food and beverage companies in all segments of the industry achieve their business goals.

Mary advises clients on Food and Drug Administration (FDA) and United States Department of Agriculture (USDA) compliance with current good manufacturing practice (cGMP), advertising and labeling compliance, and food safety issues that arise throughout the entire food supply chain. She also advises on enforcement actions and drafts comments on proposed regulations and agency guidance. Mary also has experience with matters in front of the Federal Trade Commission’s Bureau of Consumer Protection.

Prior to law school, Mary was a legal assistant at a Washington, D.C. law firm, where she assisted lawyers in white-collar investigations, pharmaceutical class action litigations, and federal habeas petitions for death row inmates.

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