In Re: Papa John’s Employee and Franchisee Employee Antitrust Litigation

District Court, W.D. Kentucky·Decided August 14, 2026·No. 3:18-cv-00825·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF KENTUCKY LOUISVILLE DIVISION In Re: Papa John’s Employee and Franchisee Employee Antitrust Litigation

Case No. 3:18-cv-825-BJB * * * * * FINAL APPROVAL OPINION & ORDER A. This Litigation. This class-action settlement began as an antitrust controversy concerning alleged agreements in which Papa John’s franchisees agreed not to compete with one another for employees. They allegedly “colluded” with one another, as well as Papa John’s corporate officers, through “agree[ments] to not solicit or hire each other’s employees,” which allegedly depressed wages and reduced worker mobility. Consolidated Amended Complaint (DN 54) ¶¶ 6–8, 10–11. A putative class of employees sued, alleging violations of the Sherman Act. Soon after the complaint was filed, the judge then presiding adjudicated a motion to dismiss. His order compelled arbitration of the claim of one of the lead Plaintiffs, held that the remaining two lead Plaintiffs stated a claim under the Sherman Act, and declined to strike the complaint’s class allegations. See generally Memorandum Opinion (DN 90). The parties next conducted extensive discovery: “more than 400,000 pages of documents[,] including over 18 million records of employee data, over 6.6 million applicant tracking records, and over 376 million point-of-sale records,” along with “ten depositions” and lengthy expert evaluation. Motion for Final Approval (DN 286) at 9. Then the parties reached a conditional agreement, subject to judicial approval under FED. R. CIV. P. 23(e), to settle the claims of absent doughslappers within the would-be class. See DN 202. The first bid for preliminary approval failed, with counsel ordered to file additional briefing on Rule 23’s adequacy and typicality requirements, as well as the question (going to predominance) whether antitrust law’s “rule of reason” or instead its “per se rule” applied. See Order Denying Preliminary Approval (DN 227) at 6, 8 (“Making the findings required by Rule 23 requires additional information.”). After the parties updated their submissions, see Amended Motion for Settlement (DN 239), the Court held a preliminary-approval hearing, see DN 245, and granted the second motion for preliminary approval, see DN 270. Certification was likely, but questions persisted about notice and a possible service award. See Preliminary Approval Order (DN 270). The Court then held a final fairness hearing to evaluate the proposed settlement. See DN 293; FED. R. CIV. P. 23(e)(2). The preliminary-approval order explained why the proposed settlement here likely satisfied the criteria for final approval of a classwide settlement. See DN 270 at 2–10. No new information that emerged during the final hearing cast doubt on that determination. So the Court confirmed certification despite a few lingering concerns. B. Legal Standard. Federal Rule of Civil Procedure 23(e) supplies a process and standard for judicial review of “a class,” such as this, that is “proposed to be certified for purposes of settlement.” Because no class had been certified before the parties reached a settlement, and because that settlement aimed to resolve the claims of all members of the putative class, this provision requires the trial judge to assess (1) whether the claims are appropriate for classwide resolution under Rule 23(a) & (b)(3), and (2) whether that resolution is appropriate for absent class members who’d be bound by the judgment under Rule 23(e)(2). The first concern tracks the procedural requirements underpinning all class litigation. A settlement “‘class action’” fit for approval under Rule 23(e) must be “one qualified for certification under Rule 23(a) and (b).” Anchem Products v. Windsor, 521 U.S. 591, 621 (1997). To certify a class, judges must assure themselves that the class “satisf[ies] all four of the Rule 23(a) prerequisites—numerosity, commonality, typicality, and adequate representation.” Young v. Nationwide Mutual Insurance, 693 F.3d 532, 537 (6th Cir. 2012). Additionally, because this is a class proposed under Rule 23(b)(3), the Court must find that “questions common to the class predominate over questions affecting only individual members,” and that a class action is a superior way to resolve the controversy. In re Scrap Metal Antitrust Litig., 527 F.3d 517, 535 (6th Cir. 2008). “A party seeking class certification must affirmatively demonstrate … compliance” with Rule 23 by “prov[ing] that there are in fact sufficiently numerous parties, common questions of law or fact, etc.” Wal-Mart Stores, Inc. v. Dukes, 564 U.S. 338, 350 (2011) (emphasis in original). Only if the class is “qualified for certification” under Rule 23(a)–(b), Anchem, 521 U.S. at 621, may the court proceed to assess it under Rule 23(e). And in making that determination, judges pay “undiluted, even heightened, attention” to Rule 23’s procedural requirements. That’s because certification at the time of judgment is final in a way that interlocutory certification is not: “a court asked to certify a settlement class will lack the opportunity, present when a case is litigated, to adjust the class, informed by the proceedings as they unfold.” Id. at 620. The second concern is more substantive—and unique to class settlements. Judges ordinarily needn’t (and shouldn’t) concern themselves with the details of arms-length dispute resolution. In class litigation, however, judges “cannot rely on the adversarial process to protect the interests of the persons most affected by the litigation—namely, the class.” In re Dry Max Pampers Litigation, 724 F.3d 713, 718 (6th Cir. 2013). That’s because “a settling defendant is concerned only with its total liability” and “not the manner in which that amount is allocated between the class representatives, class counsel, and unnamed class members.” Id. at 717. “Because class actions are rife with potential conflicts of interest …, district judges presiding over such actions are expected to give careful scrutiny to the terms of proposed settlements in order to make sure that class counsel are behaving as honest fiduciaries for the class as a whole.” Mirfasihi v. Fleet Mortgage Corp., 356 F.3d 781, 785 (7th Cir. 2004). In service of this principle, judges must satisfy themselves that the proposed settlement is “fair, reasonable, and adequate.” FED. R. CIV. P. 23(e). In the Sixth Circuit, that analysis turns on two overlapping sets of factors—one that comes from Rule 23(e) itself, the other from caselaw that developed before the Federal Rules provided its own list of “core concerns” for evaluating classwide settlements. See Wayside Church v. Van Buren County, No. 24-1598, 2025 WL 2829601, at *10 (6th Cir. Oct. 6, 2025) (discussing how 2018 amendment and Advisory Committee Note affected circuit practice under Rule 23(e)(2)). Under Rule 23(e)(2), courts consider whether the class representatives and counsel adequately represented the class, negotiated at arm’s length, and provided “adequate” and “equitabl[e]” classwide relief. See In re East Palestine Train Derailment, 158 F.4th 704, 713 (6th Cir. 2025) (applying Rule 23(e)(2)). Prior Sixth Circuit caselaw, not yet overruled or even displaced, identifies seven related considerations: “(1) the risk of fraud or collusion, (2) the complexity, expense and likely duration of the litigation, (3) the amount of discovery engaged in by the parties, (4) the likelihood of success on the merits, (5) the opinions of class counsel and class representatives, (6) the reaction of ab

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