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Papa John's founder sues company for internal documents

Papa John's International Inc.'s former chairman John Schnatter filed a lawsuit against the pizza chain that he founded, Reuters reported July 26.

Schnatter filed the complaint at the Delaware Chancery Court claiming the company had not responded sufficiently to an earlier request for internal documents to inspect allegations of inappropriate behavior.

In a statement, Schnatter's lawyers said they want to inspect company documents because of the company's "unexplained and heavy-handed" treatment towards Schnatter following the publication of a report that accused Papa John’s founder of using a racial slur. The report claimed that Schnatter used a racial slur during a media training call.

Schnatter stepped down as chairman on July 11 amid accusations of racism.

On July 22, Papa John's board of directors approved the adoption of a limited duration shareholder-rights plan to prevent Schnatter from acquiring a controlling stake in the company.