PZZA Shareholder Alert: Investors With Losses May Seek to Lead the Class Action in Papa John’s International Securities Lawsuit - Contact Levi & Korsinsky

Papa John's investors are alleged to have absorbed a $5.11 per-share single-session loss and a suspended dividend on August 6, 2026, in a securities action alleging the Company's strategic transformation was portrayed as working while it was allegedly taking longer than expected

NEW YORK, Sept. 28, 2026 (GLOBE NEWSWIRE) -- Levi & Korsinsky, LLP notifies institutional investors in Papa John's International, Inc. (NASDAQ: PZZA) that a class action lawsuit has been filed on behalf of shareholders who purchased securities between August 7, 2025 and August 5, 2026. Request an institutional investor loss assessment. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

PZZA closed at $24.64 on August 6, 2026, down $5.11 per share, a single-session decline of about 17.18%. The same announcement suspended the Company's dividend. To be considered for lead plaintiff, investors must file by November 2, 2026.

Notice to Institutional Holders

Funds carrying PZZA into that session absorbed a mark-to-market loss and the removal of a recurring income stream in the same disclosure. Positions built across the twelve-month Class Period may carry losses spread over many purchase lots at differing cost bases, which affects both loss quantification and lead plaintiff standing.

The pleading asserts that shares were acquired at artificially inflated prices because public statements described the Company's strategic transformation as delivering results, while, as averred, that transformation was taking longer than expected and ultimately required a sharp pivot toward promotional spending.

Fiduciary Obligations and Recovery Options

• Income-oriented mandates and dividend-focused strategies may need to document the effect of the suspended distribution on holdings acquired during the Class Period.
• ERISA plan fiduciaries and public pension trustees generally evaluate whether pursuing available claims is consistent with their duty to preserve plan assets.
• Loss assessments for institutions typically require transaction-level detail across all purchase and sale lots, not a single blended cost figure.
• Appointment as lead plaintiff gives an institution direct oversight of counsel, case strategy, and any resolution, without increasing that institution's individual recovery.
• Institutions that do not seek appointment remain absent class members and may still participate in any recovery obtained.
• Reviewing eligibility carries no cost and no obligation to take any further step.

"Institutional investors play a critical role in securities class actions, and courts frequently look to funds with substantial documented losses to guide these cases. Here, the complaint charges that a dividend suspension and a materially reduced outlook followed a year of assurances about the Company's transformation." -- Joseph E. Levi, Esq.

Contact us to learn more about institutional recovery options or call (212) 363-7500.

INSTITUTIONAL INVESTOR REPRESENTATION — Levi & Korsinsky, LLP provides sophisticated counsel to institutional investors evaluating lead plaintiff opportunities. The firm has recovered hundreds of millions of dollars. Ranked among ISS Top 50 for seven consecutive years.

Frequently Asked Questions About the PZZA Lawsuit

Q: When did Papa John's International, Inc. allegedly mislead investors? A: The Class Period runs from August 7, 2025 to August 5, 2026. The complaint alleges that corrective disclosures revealed information that caused a significant stock decline.

Q: What court was the PZZA class action filed in? A: The case was filed in the United States District Court for the Western District of Kentucky, Louisville Jury Division, governed by the Private Securities Litigation Reform Act of 1995.

Q: Who are the defendants named in the PZZA lawsuit? A: The complaint names Papa John's International, Inc. and individual defendants who were senior investors during the class period, including Todd Allan Penegor and Ravi Thanawala.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What do PZZA investors need to do right now? A: Investors may gather brokerage records showing purchase dates, share quantities, and prices paid. Submit your information for a no-cost, no-obligation evaluation of your potential recovery. No immediate action is required to remain eligible as an absent class member.

Q: What if I already sold my PZZA shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.

CONTACT:

Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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