RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Papa John’s International, Inc. (“Papa John’s” or the “Company”) (NASDAQ: PZZA) securities between February 25, 2014 through July 19, 2018, inclusive (the “Class Period”).
Papa John’s shareholders may, no later than October 29, 2018, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Papa John’s and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
Papa John’s operates and franchises pizza delivery and carryout restaurants under the Papa John’s trademark in the United States and internationally. Papa John’s is among the largest carryout and pizza delivery restaurant chains in the United States.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose that: (i) Papa John’s executives, including Defendant John H. Schnatter (“Schnatter”), had engaged in a pattern of sexual harassment and other inappropriate workplace conduct at the Company; (ii) Papa John’s Code of Ethics and Business Conduct was inadequate to prevent the foregoing misconduct; (iii) 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 (iv) 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.
On 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.”
On 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, 2018.
If you are a member of the class, you may, no later than October 29, 2018, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.