In his lawsuit, which was filed in a Kentucky court, Schnatter argues that Laundry Service deliberately leaked details of that call without providing proper context.
Last week, he gave a awkward interview in which he claimed that Papa John's quality has gone down without him at the helm, claiming he had eaten "over 40 pizzas in the last 30 days". Instead, Laundry Service asked Schnatter about his views on race during the call, he says.
Schnatter was forced out of the company he founded previous year after using the N-word on a conference call.
The complaint also highlights a commercial dispute between Laundry Service and Papa John's global in which Casey Wasserman, the CEO of Laundry Service's parent company, told Papa John's then-CEO Steve Ritchie that he would "bury the founder" if Laundry Service was not paid $6 million.
Schnatter used the n-word during the media-training phone call with Laundry Service, which took place on May 22, 2018, and was made public in a Forbes story on July 11, 2018.
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That last count refers to intentionally interfering in contractual relations, when one party intentionally damages another's contract or business dealings with a third party, inflicting economic harm.
John Schnatter was once worth more than $1 billion, which shrank to half that as Papa John's stock collapsed. The agency announced that it had resigned the account sometime after the conference call.
Papa John's had a longtime relationship with the NFL, spending 25% of its budget on league-related marketing and advertising, according to the lawsuit.
BidaskClub cut shares of Papa John's Int'l (NASDAQ:PZZA) from a buy rating to a hold rating in a report released on Wednesday, November 20th, BidAskClub reports. "If anything, these comments should be seen as an endorsement of the players' right to continue to protest". Mr. Schnatter has pledged to contribute all net proceeds from this lawsuit to charity.
Laundry Service had just been hired as Papa John's ad agency and, according to the complaint, the agency advocated for the company to use Kanye West in its new campaign. "We encourage people to read the complaint and look at what John actually said".
Now, Schnatter is suing Laundry Service and its parent company, Wasserman Media Group.