Plaintiff's law firm issued a press release on August 30, 2018 announcing the lawsuit. According to the press release, Papa John’s operates and franchises pizza delivery and carryout restaurants under the Papa John’s trademark in the United States and internationally. Papa John’s is among the largest carryout and pizza delivery restaurant chains in the United States.
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose that: (i) Papa John’s executives had engaged in a pattern of sexual harassment and other inappropriate workplace conduct at the Company; (ii) Papa John’s Code of Ethics and Business Conduct was inadequate to prevent the foregoing misconduct; (iii) the foregoing conduct would foreseeably have a negative impact on Papa John’s business and operations, and expose Papa John’s to reputational harm, heightened regulatory scrutiny, and legal liability; and (iv) as a result, Papa John’s public statements were materially false and misleading at all relevant times.
On January 9, 2019, the Court issued an Order appointing Lead Plaintiff and Counsel. On February 14, Lead Plaintiff voluntarily dismissed one of the individual Defendants. On February 19, Lead Plaintiff filed an amended Complaint. Defendants filed a Motion to Dismiss the amended Complaint on March 29. On March 16, 2020, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint. On April 30, Lead Plaintiff filed a second amended Complaint.