Papa John’s International founder John Schnatter has agreed to leave the board as part of a settlement agreement with the company, signaling the end to an acrimonious battle for control over the world’s third-largest pizza delivery chain.
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, who owns about 30 percent of the company’s shares, would resign from the board if the independent director is appointed before the 2019 annual stockholder meeting, Papa John’s said.
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.
Early last month, Papa John’s snubbed an investment offer from Schnatter and instead accepted an investment of up to $250 million from Starboard value LP in return for a nearly 10 percent stake, while naming the hedge fund’s Chief Executive Officer Jeffrey Smith as its chairman.
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.
He stepped down as the company’s chief executive in December of 2017, after drawing criticism for comments he made against National Football League leadership.
The bad press took a toll on the company, which said last week its North America same-store sales fell 7.3 percent in 2018.
Papa John’s, which expects lagging sales in the first half of 2019, blamed the negative publicity for faltering sales and pushed to improve its public image by removing Schnatter’s image from promotional materials and pizza boxes.
Reporting by Soundarya J in Bengaluru; Editing by Arun Koyyur
Sondland used WhatsApp to communicate with Ukraine — and won’t turn over the messages: report
Ambassador Gordon Sondland used WhatsApp to send encrypted messages to a top Ukranian official, The Washington Post reported Saturday.
The communication occurred with Andriy Yermak, a top aide to President Volodymr Zelensky, when Sondland was in Kyiv, the newspaper reported.
"Sondland was also texting back and forth on WhatsApp with Yermak throughout the trip, and had been communicating with other Ukrainian officials over the messaging app in the preceding and subsequent months, according to people familiar with his interactions," The Post reported.
Jeanine Pirro pushes conspiracy theory 2016 election interference ‘apparently’ started in Ukraine
The United States intelligence community is united in the conclusion that it was Russia that interred in America's 2016 presidential election.
But Fox News personality Jeanine Pirro said that 2016 election interference "apparently" started in Ukraine.
The conspiracy theory underlying the false claim resulted in President Donald Trump seeking foreign election interference from Ukraine, the scandal at the heart of the impeachment inquiry.
Pirro also said Deputy Assistant Secretary of State Geoge Kent is a "bozo."
Video of Pirro's opening was posted on Twitter by President Donald Trump:
WATCH: Pete Buttigieg surges to first place in ‘gold standard’ poll of Iowa caucuses
South Bend Mayor Pete Buttigieg surged in a poll of Iowa released Saturday night.
The poll, by Des Moines Register, CNN and Mediacom, showed major movement in the race.
"Since September, Buttigieg has risen 16 percentage points among Iowa’s likely Democratic caucusgoers, with 25% now saying he is their first choice for president. For the first time in the Register’s Iowa Poll, he bests rivals Joe Biden, Bernie Sanders and Elizabeth Warren, who are now clustered in competition for second place and about 10 percentage points behind the South Bend, Indiana, mayor," the newspaper reported.