A class action lawsuit has been filed on behalf of persons who purchased or otherwise acquired securities of Papa John’s International, Inc. (NASDAQ: PZZA) from February 25, 2014 through July 19, 2018, inclusive (the “Class Period”).
If you purchased or acquired Papa John’s securities during the Class Period and would like more information about the shareholder class action, please contact Safirstein Metcalf LLP at 1-800-221-0015, or email info@SafirsteinMetcalf.com or fill out the form on the right.
If you wish to serve as lead plaintiff, you must move the Court no later than October 29, 2018. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice or may choose to do nothing and remain an absent class member.
According to the complaint, defendants during the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) Papa John’s executives, including John H. Schnatter, engaged in a pattern of sexual harassment and other inappropriate workplace conduct; (2) Papa John’s Code of Ethics and Business Conduct was inadequate to prevent the foregoing misconduct; (3) the foregoing conduct would foreseeably have a negative impact on Papa John’s business and operations, and expose Papa John’s to reputational harm, heightened regulatory scrutiny, and legal liability; and (4) as a result, Papa John’s public statements were materially false and misleading at all relevant times.
On July 10, 2018, post-market, and July 11, 2018, media outlets reported that Papa John’s founder, Defendant Schnatter, had used a racial slur during a conference call in May 2018. Following this news, Papa John’s stock price fell $2.46 per share, or 4.84%, to close at $48.33 per share on July 11, 2018. Later that day, Papa John’s announced Schnatter’s resignation as chairman of Papa John’s board.
Then, on July 19, 2018, Forbes published an article entitled “The Inside Story of Papa John’s Toxic Culture.” Citing “interviews with 37 current and former Papa John’s employees—including numerous executives and board members,” the Forbes article reported that “Schnatter’s alleged behavior ranges from spying on his workers to sexually inappropriate conduct, which has resulted in at least two confidential settlements.” The Forbes article further reported that “[t]o protect himself, Schnatter . . . installed loyalists in the firm’s top ranks, who enabled its ‘bro’ culture.” Following this news, Papa John’s stock price fell $2.60 per share, or 4.85%, to close at $51.00 per share on July 19, 201