The popular pizza chain restaurant faces a class-action suit for sending over 500,000 illegal text messages to customers. Papa Johns could face up to $250 Million in penalty. Papa Johns customers received multiple unsolicited text-messages regarding offers and deals.
Erin Chutich, one of the plaintiffs told CNN Money, "After I ordered from Papa John's, my telephone started beeping with text messages advertising pizza specials...Papa John's never asked permission to send me text message advertisements."
The suit was filed with the U.S. District Court for the Western District of Washington in Seattle. Attorney Donald Heyrich is representing the plaintiffs. The nation-wide class action suit was filed on November 9. U.S. District Court Judge John Coughenour, approved of the case and said plaintiffs could go through with class-action suit.
Papa Johns plans to appeal the suit, Caroline Oyler, the franchise's attorney told CNN, "We'll continue to litigate the case and defend the lawsuit and move to have it dismissed."
According to the Huffington Post, Papa Johns Pizzaria faces up to $250 million in damages and plaintiffs might be granted $500 per text message received, but Heyrich says that the judge could grant them as much as $1,500 per text. According to CNN, some plaintiffs received 16 text messages within just a few minutes.
Papa Johns, however, claims that the text messages were sent through a third party, OnTime4U, a cell phone marketing company, which was contracted by Papa Johns. The marketing company is also being sued in the same case.
As a result, the company's stock fell since Tuesday by 34 cents to $49.10 and then further dropping to $46.72 that is about two percent.
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