Papa John's founder to resign from board, drop lawsuits
LOUISVILLE, Ky. - John Schnatter will resign from the board of directors for Papa Johns as part of a settlement between the company and its founder.
Schnatter previously resigned as chairman but remained on the board of directors.
Court filings indicate that Schnatter will resign from the board if an independent director is appointed before the company's April 30 annual stockholder meeting, according to USA Today.
The company will work with Schnatter to find an independent director, who isn't affiliated with hedge fund Starboard Value or Schnatter.
Last year, the company's stock plummeted, and the brand received backlash after Schnatter reportedly used a racial slur during a media training session.
USA Today reports that Schnatter also agreed to dismiss two lawsuits against Papa Johns.