- Papa John's and its founder, John Schnatter, have reached a settlement.
- As part of the deal, Schnatter will drop his lawsuit against the pizza chain and resign as an independent director.
- He is expected to help find a replacement.
- Watch Papa John's trade live .
The pizza chain Papa John's and its founder, John Schnatter, have reached an agreement that will remove Schnatter from the company's board of directors.
Under the agreement, Schnatter, who owns about 30% of the pizza chain, will resign as an independent director and help the company find a replacement, according to a filing out Tuesday morning. Schnatter will also drop his lawsuit against the company.
The deal comes a month after the hedge fund Starboard Value invested $200 million in Papa John's and named its CEO, Jeffrey Smith, as the chairman of the pizza chain's board.
Schnatter stepped down as CEO in December 2017 after facing backlash for criticizing NFL anthem protests. He resigned as chairman of the company on July 11 after he admitted to using a racial slur during a company conference call in May.
Papa John's shares were little changed Tuesday morning. They were up 9% this year through Monday.