Papa John's founder accused of sexual harassment

After publicly apologizing for use of a racial slur, John Schnatter is defending himself over new allegations of "sexually inappropriate conduct."
3:06 | 07/20/18

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Transcript for Papa John's founder accused of sexual harassment
otherwise, we have T wait till it gets to00 -- The newle for the papa john'sfounder. Addition to using a racial slur, the pizza giant's former CEO has been accused of sl harassment. ABC's liny S her more. Reporter: Good in robin. John schnatter, the now former O and of papa John's says his use of a racial in that iam cference ca was intended to show employees what not to say.but this mning he'g a slew of new allegations that extend deep into the papa 'S cult including allegations of sexually inappropriate behavior. Etter gredient, better pizza, phn's.eporter: Just days after publicly apologizing on local TV his use of a racial slur - I D't condone racism in any Y, peod. It's just wras a mistake. It was horrible. Reporter: This mog, disgraced pizza man John schnatte defend himself onceagain. This time against aio a new artic on citing rts from dozens of mostly anonymous rr forr papa John's employees aiming schnatter would spy on his workers and splayed sexually inappropriate conduct. A former female employee who told Usha ery time she walked down the hall schnatt insisted on hugging her,hae Aske T size of her bra, that he a if she had slept with her pvious boss, clearly ents that are never acceptable from the head of a man onef his employees. Reporter:he articlelso cites that in 1999 schnatter settled a suit with a oyee who CLA he groped and stalked her after a party, something he deniet . Forbes describes papa John's as a bro culre enabled by schnatter and other executives pronity and inappropriate ents tower women. According to one anonymous final quoted the article, there were meetings where the current CEO S rihiust laughed along. Schnatter's ateyelbc news the story CIN numerous accuraciesnd misrepreations. It's easy take false statements when oneidesind E cloak of anonymity. The pizza chain is struggling wiegativeeadlines and sluggish sales since late last year fg backla after hnatter she NFL antm protest was bad tsiness. Admitting to using that racial slur his image has been remod from the promotional material and more than a dozen profsional sport teams P many universities have suspended or led their promotions with the pza brand. We reached out to the current pa CEO, Steve Ritchie for comment and they replied atant that reads in part weehis Mr seriously. If anyths found to bng we are determined to take approprie ey also remind the public that theyhired a special committee tonvestigate company culture. WRE hearing even the agency that T med efforts are to the company Ng ties. Yes theyed that yesterday and said this new information calls into question the cultu athn's and say it's not in lineith the values. This story just continues on Andon. Does not stop. Thank you.

This transcript has been automatically generated and may not be 100% accurate.

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