Papa John’s Drama Continues as Founder Sues for Company Records

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Papa John’s (NASDAQ:PZZA) stock continues to drop as the fight with founder John Schnatter drags on.

Papa John’s Drama Continues as Founder Sues for Company Records

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The newest saga of the battle between Papa John’s and Schantter has the founder suing the company. He is doing so in an effort to obtain documents and communications between Board members and officers that concern him.

According to Papa John’s, it is providing Schantter with all of the documents that he has the right to access as a member of its Board. The fight between PZZA and its founder started recently after he resigned as its Chairman of the Board.

Schantter is now saying that it was a mistake to resign. He is also arguing that the special committee formed to handle his actions acted too quickly. This committee was made after the company founder used the “N word” during a conference call. Schantter says the committee made a decision just three hours after being formed, which he says was too hasty, NBC News notes.

The fight between Papa John’s and its founder heated up even more earlier this week. The company adopted a poison pill strategy in an effort to keep Schantter from gaining control of the company. The founder and his allies control 30% of PZZA and the poison pill will go into effect if that stake reaches 31%.

PZZA stock was down 2% as of Friday morning. The stock is also down 22% year-to-date and 17% since news of Schantter’s resignation earlier this month.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/07/papa-johns-founder-sues-company/.

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