US-based law firm KSF has started an investigation into the issue over American pizza chain Papa John’s founder John H. Schnatter’s racial statements last month.
On 10 July this year, public outrage over the issue resulted in Schnatter’s resignation as chairman of the board, following which, he admitted to and apologised for racist statements made during a media training session in May.
Schnatter also noted that he is planning to oppose efforts by the board to limit his involvement with the company. This would make way for a dispute between the two parties.
The restaurant chain’s founder recently filed a lawsuit against the company seeking documents related to his removal and accusing the board of staging a possible coup.
KSF will focus on finding whether Papa John’s officers or directors breached their fiduciary duties to Papa John’s shareholders or otherwise violated state or federal laws.
The law firm is also urging people to share information that would be helpful in conducting its investigation.
Earlier this week, the restaurant chain formed a special committee to evaluate and take action regarding the company’s relationships and arrangements with John H. Schnatter.