Report: Ad Agency Says Schnatter Claim Not True

In an internal memo obtained by Ad Age, Laundry Service says "disparaging and outrageous comments about Wasserman and Laundry Service" made in the media regarding its relationship with Papa John's are "completely false" and that it will be going on the record with a response.

John Schnatter

Last Fridsy, Papa John's founder John Schnatter accused the pizza chain's former agency of trying to extort him out of $6 million after he used the "n"-word on a conference call with the shop in May. He made the extortion accusation in an interview with Kentucky's WLKY-TV.

Schnatter stepped down as chairman last week after acknowledging that he used the term during a training exercise. He claimed his former agency wanted $6 million to "make it go away."

"They made it pretty clear, the words were, 'If I don' t get my f-ing money, I'm going to bury the founder,' said one of the executives," Schnatter said in the WLKY interview.

According to the internal email sent to Laundry Service employees Tuesday afternoon, Laundry Service plans to go on the record and refute comments made about itself and its parent company, Wasserman.