<div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Guzman y Gomez is facing a class action </span><a href="https://www.9news.com.au/law" rel="" target="_blank" title="lawsuit"><span>lawsuit</span></a><span> in the US over allegations it failed to give its employees enough notice after shutting down operations.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The lawsuit claims more than 500 workers were impacted after the news of the company exiting the </span><a href="https://www.9news.com.au/usa" rel="" target="_blank" title="US"><span>US</span></a><span> market was accidentally leaked in an internal memo.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Chicago-based law firm Haseeb Legal shared excerpts of the class action filed in the US federal district </span><a href="https://www.9news.com.au/courts" rel="" target="_blank" title="court"><span>court</span></a><span>, which director of corporate operations and culinary Scott Bayne posted in the staff communication platform used by the company on Thursday evening local time.</span></div></div><div><div id="adspot-mobile-medium"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>NATIONAL:</span></strong><span> </span><a href="https://www.9news.com.au/national/police-intelligence-in-spotlight-bondi-terror-attack-royal-commission-antisemitism/bbd6b768-7157-46f2-9d8f-55a7e2277159"><strong><span>'Surprise attack': Bondi probe hears from ASIO director-general</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"After careful consideration, we have made the difficult decision to exit the US market. This means we will be closing all our restaurants from today," the message said.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Under US law, employees must be given at least 60 days' notice in writing before their employment at the business is terminated.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Haseeb Legal has set up a website where people who have been impacted can sign up and receive updates on the progress of the lawsuit.</span></div></div><div><div class="OUTBRAIN" data-reactroot="" data-src="//www.9news.com.au/national/guzman-y-gomez-class-action-lawsuit-chicago-usa-closure/d3e25fe9-692b-47a3-9e1f-66df1deea20f" data-widget-id="AR_5"></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The website suggests some employees were informed via an email on the WorkVivo app.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Guzman y Gomez has been approached for comment.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>LIVE UPDATES:</span></strong><span> </span><a href="https://www.9news.com.au/world/us-israel-iran-war-live-updates-may-25-donald-trump-latest-world-news-headlines/d67ef258-4f90-43cb-8ab3-c229d074f404" rel="" target="_blank" title=""><strong><span>'Maybe today': Rubio hints US-Iran deal could come sooner than we think</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>The chain announced its shutdown last week in an announcement to the </span><a href="https://www.9news.com.au/australia" rel="" target="_blank" title="Australian"><span>Australian</span></a><span> Securities Exchange, saying it was shutting its Chicago-based restaurants with "immediate effect".</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"Having spent the last 3 months in the US, I realised this was going to take significantly more time and capital than we had expected," founder and CEO Steve Marks said in the statement.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"The financial performance of the US business has not been acceptable and is not meeting targeted hurdles."</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>It comes as the company's share price plummeted </span><a href="https://www.9news.com.au/national/guzman-y-gomez-share-price-fall-australia-asx/fa92fb80-c9ce-4c64-822c-603de49c8ee2" rel="" target="_blank" title="earlier in the year"><span>earlier in the year</span></a><span> due to the struggles of the expansion into the USA, a crowded market for Mexican-style fast food.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span>READ MORE:</span></strong><span> </span><a href="https://www.9news.com.au/national/dezi-freeman-neal-thompson-vadim-de-waart-hottart-deaths-coronial-investigation/9e7bca65-b3d3-40eb-89f6-c093c9225ef3" rel="" target="_blank" title=""><strong><span>What Dezi Freeman texted wife moments after shooting</span></strong></a></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><strong><span></span></strong></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>After lower-than-expected profits in the first half of the financial year, the company's value dropped 10 per cent, or $200 million.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Investors received the news of Guzman Y Gomez's exit from the US market positively, with its share price soaring 20 per cent on Friday, and it has risen by 14 per cent in the last five days.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>Marks said the company was now looking to consolidate its expansion in Australia, and focusing on its outlets in Asian nations like </span><a href="https://www.9news.com.au/japan" rel="" target="_blank" title="Japan"><span>Japan</span></a><span> and </span><a href="https://www.9news.com.au/singapore" rel="" target="_blank" title="Singapore"><span>Singapore</span></a><span>.</span></div></div><div class="block-content"><div class="styles__Container-sc-1ylecsg-0 goULFa"><span>"We have a long runway ahead of us in Australia as we progress towards our long-term target of 1000 restaurants," he said last week.</span></div></div>