NEW YORK, Aug. 31, 2018 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired Papa John’s International, Inc. (PZZA) securities between February 25, 2014 and July 19, 2018, (the “Class Period”). Investors have until October 29, 2018 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose materially adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose that: (1) Papa John’s executives, including Defendant John H. Schnatter, had engaged in a pattern of sexual harassment and other inappropriate workplace conduct at the Company; (2) Papa Johns’ 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 Johns’ business and operations, and expose Papa John’s to reputational harm, heightened regulatory scrutiny, and legal liability; and (4) as a result, Papa Johns’ 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 Johns 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. 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, 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 firms 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 purchased Papa John’s securities during the Class Period or continue to hold shares purchased before the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at investigations@bespc.com, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the Papa John’s International, Inc. lawsuit, please go to https://bespc.com/pzza/. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com.
Contacts
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com