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Litigation
In 1997, Pizza Hut filed a lawsuit against Papa John's based on a series of advertisements that compared the ingredients of Papa John's and its competitors. Pizza Hut successfully argued that Papa John's slogan did not constitute statements of literal fact – that "fresher ingredients" do not necessarily account for a "better" pizza. This ruling was overturned in 2000 when Papa John's appealed the decision. Although the jury's decision on the misleading advertising was upheld, the appeals court determined that Pizza Hut failed to prove, under the requirements of the Lanham Act, that the misleading advertising and puffery had a material effect on consumers' purchasing decisions.
In 2012, the company was the subject of a class-action lawsuit for allegedly sending over 500,000 unwanted text messages to customers.[99] The suit sought over $250 million in damages, though the company settled to pay $16.5 million, awarding claimants up to $50 in damages, and a free, large, one-topping pizza.[100]
In August 2015, Papa John's agreed to pay $12.3 million to settle a class-action lawsuit in which the company was accused of undercompensating 19,000 delivery drivers in the states of Arizona, Florida, Illinois, Maryland, Missouri and North Carolina. The complaint stated that the flat reimbursement amount per delivery for drivers failed to equal minimum wage.[101]
In July 2016, Panera Bread filed a lawsuit with the U.S. Eastern District Court in Missouri accusing Papa John's of stealing digital trade secrets and proprietary data management strategies by hiring Michael Nettles, a former Panera executive who was in charge of the chain's corporate digital technologies deployment.[102] In August, a Federal judge issued a restraining order, preventing Nettles from reporting to work at Papa John's while the case was active.[103] Later that year, Panera told the Federal court that it had agreed to drop the lawsuit in December 2016. Details that led to the lawsuit being dropped were not made public.[104]
See also
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Companies portal
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Cardinal Stadium – a football stadium on the campus of the University of Louisville formerly bearing the company's name via a naming rights agreement
List of pizza chains
List of pizza chains of the United States
List of pizza franchises
List of pizza varieties by country
List of major employers in Louisville, Kentucky
List of the largest fast food restaurant chains |
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