Papa John’s founder sues pizza chain

The founder of Papa John’s has filed a lawsuit against the company, its board of directors and CEO in the latest twist in the drama surrounding the pizza chain.

John Schnatter filed the lawsuit in Delaware’s Court of Chancery asking the court to help stop what he sees as irreparable harm being done to the company.

Schnatter resigned in July as Papa John’s chairman amid a report that he used a racial slur during a media training session. But he remains the Louisville, Kentucky-based company’s biggest shareholder and has said his resignation was a mistake.

The complaint filed Thursday is sealed. But a statement from Schnatter’s representatives says the lawsuit claims CEO Steve Ritchie and the board of Papa John’s International Inc. are harming the company by “their repeated, and ongoing, breaches of the duties of loyalty and care” owed the company.

Papa John’s said it will fight Schnatter’s lawsuit, which it said is without merit.

“John Schnatter will do anything to distract attention from the harm caused by his inappropriate words,” the company said.

The lawsuit is the second filed by Schnatter in the court in Delaware, where Papa John’s is incorporated. He also is suing to gain access to the company’s books and records in a complaint where he accuses the company of treating him in an “unexplained and heavy-handed way.”