Papa John’s Ousted CEO Files Lawsuit Against Ad Firm

  • Comments secretly taped, twisted in dispute over bill, he says
  • Schnatter says he referred to racial epithet made by others
John SchnattnerPhotographer: Steven Ferdman/Getty Images
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Papa John’s International Inc.’s ousted founder John Schnatter sued an advertising firm for secretly taping a conversation with him and then allegedly selectively leaking his comments to make it sound like he backed the use of racial epithets as part of a billing dispute.

Schnatter, who was ousted last year when the comments became public, claims they were taken out of context and that he had been criticizing a well known public figure for using a racial slur, according to a lawsuit he said he filed Thursday in state court in Kentucky. He sued media agency Laundry Service and its parent, Wasserman Media, which handled some Papa John’s advertising.