Cava faces $2.2 billion lawsuit over insider trading allegations as stock sits at fraction of former highs

Cava Group, the Mediterranean fast-casual darling that went public in 2023 to widespread fanfare, is now staring down a $2.2 billion shareholder derivative lawsuit alleging that company founders and board members sold massive quantities of stock while concealing deteriorating business fundamentals. The complaint, originally filed under seal on July 22 and unsealed on July 28, paints a picture of insiders who knew the party was ending and quietly headed for the exits. The suit was brought by the Cleveland Bakers and Teamsters Pension Fund, which claims entities tied to Belgian billionaire Eric Wittouck offloaded nearly $1.8 billion in shares, while other company insiders and directors sold approximately $500 million more. Of that insider total, roughly $330 million is linked to co-founder Ronald Shaich. All of these sales allegedly occurred between August 2024 and March 2025, a window that ended right before Cava began making what the complaint calls “corrective disclosures” about its slowing performance. The complaint alleges that Cava’s leadership was aware the company’s growth trajectory was faltering due to broader fast-casual industry headwinds, but continued projecting strengt...