Class action suit alleges Papa John's had sexual harassment problems
A class action suit has been filed against Papa John's and some of its officers, including Founder John Schnatter alleging that between Feb. 25, 2014 and July 19, 2018, the brand's leadership failed to disclose that Papa John's executives, "including Defendant John H. Schnatter, had engaged in a pattern of sexual harassment and other inappropriate workplace conduct."
A news release from the New York City Pomerantz law firm went on to say that the suit, filed in U.S. District Court for the southern district of New York, alleges that the company's ethics and business conduct codes weren't sufficient to prevent the kind of behavior it alleges and that the sexual harassment and other inappropriate workplace conduct would have a negative effect on business at the chain, exposing "Papa John's to reputational harm, heightened regulatory scrutiny, and legal liability." As a result, the suit alleges that Papa John's public statements were materially false and misleading at all relevant times.
The action is taken on behalf of those — other than the named defendants — who purchased or otherwise acquired Papa John's securities between Feb. 25, 2014, through July 19, 2018. It seeks to recover damages from securities laws violations from the company and certain top officials.
Shareholders that fall in that class have until Oct. 29, 2018, to ask the court to appoint them as lead plaintiff for the class. Pizza Marketplace is seeking comment from Papa John's, but has not received a response yet.