Pizza Chain Papa Murphy’s Sued Over $190M MTY Food Merger

A take-and-bake pizza chain’s investors want more information before they commit to a $190 million merger with a Canadian restaurant franchisor, an April 30 suit said.

Papa Murphy’s Holdings Inc. didn’t provide enough detail about its proposed merger with MTY Food Group Inc., the complaint filed in the U.S. District Court for the District of Delaware said. The pizza chain should have told investors more about its financial projections, the suit said.

Papa Murphy’s solicitation statement, filed with the U.S. Securities and Exchange Commission April 25, left out details about how the chain’s financial adviser calculated its earnings before interest, ...