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Delaware judge grants John Schnatter access to requested documents

The documents Schnatter requested are internal emails and meeting minutes relating to his departure.
Credit: Rob Kim/Getty Images
John H. Schnatter, Founder and former Chairman & CEO of Papa John's International, Inc. rings the NASDAQ Opening Bell at NASDAQ MarketSite on January 31, 2014 in New York City.

LOUISVILLE (WHAS11) – A Delaware court has ruled in John Schnatter’s favor and the court said the businessman should be given documents Schnatter has requested after he resigned as the company chairman.

The documents Schnatter requested are internal emails and meeting minutes relating to his departure.

The company argued that Schnatter, who was pressured to resign in as chairman in July, wanted records to further his own interests. A judge says the company failed to prove that his intent wasn't related to his job.

RELATED: Papa John's releases first ad without John Schnatter

The judge did, however, say that Schnatter's request for all documentation relating to him was too broad and narrowed the documents he has access to.

The lawsuit was filed after 2018 Forbes report saying Schnatter used a racial slur during a conference call with a consultant.

RELATED: CNBC: John Schnatter in talks with private-equity firms to buy Papa John's

The following is a statement from the Papa John’s International:

“We are pleased that the Delaware Court of Chancery agreed that John Schnatter’s remaining document requests are “overbroad” and significantly limited the scope of these requests. Papa John’s has already provided and will continue to provide John Schnatter with all materials that he is entitled to receive. Our focus remains on the important steps we are taking to move Papa John’s forward and create a better future for our 120,000 corporate and franchise team members.”

John Schnatter sent out a statement late Tuesday:

“We are pleased that Mr. Schnatter was vindicated today by the Delaware Court of Chancery, which ruled that Papa John’s must give Mr. Schnatter numerous documents it has wrongly withheld from him for months,” said Garland A. Kelley, attorney for Mr. Schnatter.

“Mr. Schnatter sought access to those documents after the unexplained and heavy-handed behavior of various Company insiders — including members of the Board and some in management — who may have placed their own self-interests ahead of the best interests of the Company, its shareholders, employees and franchisees. The Court’s ruling comes after a full trial on the matter, where the Company did not (or could not) offer any witness who could defend its position.”

 

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