Former Attorney General of Louisiana, Charles C. Foti, Jr., Esq., a partner at the law firm of Kahn Swick & Foti, LLC, announces that KSF has commenced an investigation into Papa John’s International, Inc. (NasdaqGS: PZZA).
In July 2018, a public battle erupted between founder, John Schnatter, and the Board of Directors after he resigned as Chairman when his use of a racial slur during a conference call was made public, later reversing his decision, leading the Board to limit his involvement. Schnatter, who owns 30.9% of the Company, subsequently filed suit against the Board alleging breaches of care and duty. Later, news reports revealed allegations against Schnatter for inappropriate behavior that had resulted in “at least two confidential settlements.” In August 2018 and again in November, the Company reported disappointing quarterly financial results amid the continuing fallout. Recently, a former employee filed a class action lawsuit against the Company for utilizing anti-competitive “no hire” agreements prohibiting its franchisees from hiring workers from other company franchises.
The Company has been exposed to significant financial losses as well as a securities class action lawsuit for failing to disclose material information to investors, which is ongoing, and other litigation.
KSF’s investigation is focusing on whether Papa John’s officers and/or directors breached their fiduciary duties to Papa John’s shareholders or otherwise violated state or federal laws.
If you have information that would assist KSF in its investigation, or have been a long-term holder of Papa John’s shares and would like to discuss your legal rights, you may, without obligation or cost to you, call toll-free at 1-877-515-1850.
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