Papa John’s Investors Deliver Suit Over Ex-CEO’s Slur, Conduct

• Papa John’s misled investors about ex-CEO Schnatter’s conduct, complaint says

• Company policies weren’t strong enough to prevent slur, harassment, investor says

Papa John’s International Inc. faces a would-be class action from investors upset with the actions of its former CEO, John Schnatter.

A Papa John’s investor filed a putative class action against the pizza chain Aug. 30 for allegedly misleading shareholders about Schnatter’s conduct, not having adequate systems in place to prevent inappropriate workplace conduct, and negatively affecting the company’s business and reputation. Schnatter, who is also named as a defendant in the U.S. District Court for the Southern District ...