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The founder of Papa John's International, John Schnatter, greets the Starboard Value LP hedge fund's investment in the pizza chain, said his lawyer, even as he had filed a complaint on Monday. up against the company.
Papa John's unveiled this month's $ 250 million Starboard investment and named its chairman, Jeff Smith, chairman of the fund.
Schnatter, who according to Refinitiv data, holds about 30% of the company that he created in his father's bar, was president until last summer. He resigned after learning that he had used a racial insult during a media training teleconference, a decision he regretted. He had left his position as General Manager in December 2017.
Schnatter, who is still on Papa John's board, is trying to take more control of the channel. With the investment in Starboard, the number of directors went from six to nine, which diluted its influence.
"Mr Schnatter welcomes comments from Mr Smith and the company in recent days," Schnatter's lawyer Garland Kelley said in a statement. "Today's amended lawsuit demonstrates his support for Mr. Smith and his intention to revitalize the company for the benefit of all shareholders."
In his amended suit filed under seal at the Delaware Chancery Court, Schnatter's aim is to cancel a new provision of a voting agreement between Papa John's and Starboard that the hedge fund must vote the shares of its company in favor of the favored directors of Papa John.
"Such a provision has only one purpose, to strengthen the previous board, a board that has repeatedly proven its willingness to place its own interest above that of shareholders," Schnatter said in a statement. .
Schnatter also continues to challenge the poison pill that Papa John adopted last year, preventing him from having discussions on the restaurant chain with other shareholders. The lawsuit was filed for the first time in August.
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