John Schnatter to exit Papa John’s board
Schnatter will drop legal claims after reaching a settlement with the company
Joanna Fantozzi, Nation's Restaurant News
Mar 05, 2019
John Schnatter, founder and former CEO of Papa John’s International Inc., on Monday reached a settlement with the pizza company, agreeing to leave the board after he has helped to name a successor, according to a settlement filed with the SEC.
The agreement, which comes after months of legal battles and a war of words between the two parties, said Schnatter has dropped all legal claims against the Louisville, Ky.-based pizza chain, and will be replaced with his successor following the annual shareholders meeting.
Schnatter will remain the largest shareholder at Papa John’s and still retains about 31 percent of the company’s stock, according to his representative.
In February 2019, Papa John’s accepted a $200 million investment from private equity firm Starboard, and put in place the new “acting in concert” provision of a poison pill policy which would have would have compelled new members of the board — including Starboard’s executives — to vote in favor of the company’s preferred directors. In February, Schnatter had amended the original lawsuit he had filed against the company to reflect those new provisions.
As part of the settlement, Papa John’s has agreed to remove that portion of a poison pill provision, in addition to...
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