An investigation on behalf of investors of Papa Johns International, Inc. (NASDAQ: PZZA) shares over potential securities laws violations by Papa Johns International and certain of its directors and officers in connection with certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Papa Johns International, Inc. (NASDAQ: PZZA) concerning whether a series of statements by Papa Johns International regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Louisville, KY based Papa John's International, Inc. operates and franchises pizza delivery and carryout restaurants under the Papa John's trademark in the United States and internationally. Papa John's International, Inc. reported that its annual Total Revenue rose from over $1.71 billion in 2016 to over $1.78 billion in 2017 and that its net Income declined from $102.82 million in 2016 to $102.29 million in 2017.

On July 10, 2018, after the market closed, and July 11, 2018, media outlets reported that Papa Johns founder, John Schnatter, used a racial slur during a conference call in May 2018.
Later that day, Papa Johns announced Schnatters resignation as chairman of Papa Johns board.

Then, on July 19, 2018, an article was published entitled The Inside Story of Papa Johns Toxic Culture. Citing interviews with 37 current and former Papa Johns employees including numerous executives and board members, the article reported that Schnatters alleged behavior ranges from spying on his workers to sexually inappropriate conduct, which has resulted in at least two confidential settlements.

On July 26, 2018, it was reported that the founder and ousted former chairman of Papa John's International Inc on Thursday sued the pizzeria chain, complaining that the company had not provided adequate response to an earlier request for internal documents. The complaint comes after a request by John Schnatter and his attorneys access to company documents to inspect accusations of allegedly inappropriate behavior.

Shares of Papa John's International, Inc. (NASDAQ: PZZA) declined from $90.00 per share in late 2016 to as low as $43.95 per share on July 26, 2018.