The founder of Papa Johns filed a lawsuit against the company, whose board and CEO filed in the latest version of the drama about the pizza chain.
John Schnatter filed the lawsuit in Delaware's Court of Chancery, requesting the court to help end what he considered irreparable harm to the company.
Schnatter resigned as chairman last month during a conference call in May using a racial theft. He remains a board member and the largest shareholder of the company based in Louisville, Kentucky, and now regrets his resignation. He said his words had been taken out of context.
The complaint filed on Thursday is sealed. But a statement by Schnatter's representatives says that the claims brought by CEO Steve Ritchie and the board of directors of Papa Johns International Inc. harm the company through "their repeated and ongoing breaches of the duties of loyalty and care" owed to the company , hurt.
Dad Johns says it will fight Schnatter's lawsuit, which says it is without merit.
"John Schnatter will do anything to distract attention from the harm caused by his inappropriate words," the company said. "He continues to make reckless claims in his attempt to regain control and serve his own interests."
The lawsuit is Schnatter's second lawsuit at the court in Delaware, where Papa John's is recorded. He also claims to have access to the company's books and records in a complaint where he accuses the company of treating him in an "inexplicable and insulting manner".
Steve Ritchie took over asafter Schattner after he had blamed disappointing sales on the NFL's dealings with player protests during the national anthem. The chain has since moved to scrub Schnatter Image of its marketing materials as it tries to distance itself from the man who founded it in 1
Ritchie has publicly addressed the controversy chirping that the franchise is focused on improving efforts towards diversity and inclusion. "I've been listening to my team members, hearing their injuries, disappointments and anger, and our franchisees, our customers – and those who were once," Ritchie wrote.
The chain's business has meanwhile sufferedwith its founder. In July, Dad John lowered his sales outlook for the year after a third quarter of revenue decline in North America.
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