Papa John's founder John Schnatter to leave board in settlement deal

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Papa John's founder John Schnatter to leave board in settlement deal
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Papa John's reaches settlement agreement with founder Schnatter

FILE PHOTO: The Papa John's store in Westminster, Colorado, U.S. August 1, 2017. REUTERS/Rick Wilking

The company said in a filing on Tuesday that it would co-operate with Schnatter to find a mutually acceptable independent director, who would not be affiliated with hedge fund Starboard Value LP or Schnatter. Schnatter has also agreed to dismiss two lawsuits: one against the company in the Delaware Chancery Court without prejudice and another in Jefferson County, Kentucky, related to a sublease agreement with prejudice, the company said.

Schnatter had filed several lawsuits against the company in a bid to regain control. He resigned as chairman last summer, following reports he had used a racial slur on a media training conference call.

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