Schnatter's lawyer, Patricia Glaser, said in a separate letter that her client "is not going to go quietly", arguing that the board of directors can not remove Schnatter as chairman without submitting the proposal to a shareholder vote.
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. Months earlier, Schnatter had resigned as Papa John's CEO shortly after he publicly blamed the National Football League, a former corporate partner, for the pizza chain's sagging sales.
Schnatter reportedly said in his letter that he had insisted in the call that he was not racist.
Schnatter, no stranger to controversy, admitted he used the racial slur - but said the company's marketing firm had "pushed" him to use it.
Some board members want Schnatter - who owns about 30 percent of the company's stock - to leave the board altogether, Schnatter wrote in his letter. He claims that the company demanded millions "to make it go away".
'I really try to be considerate of other people's feelings with what I say or what I do. "We had talked about it and he indicated it was influx and yes he had asked for more time and then once we had made the decision, no promises were made that that would be possible obviously, and then when I made the final decision tried to reach him again and texted, that our decision was made".
The company's Twitter page had been silent following Schnatter's most recent comments until Friday when it tweeted an open letter from new CEO Steve Ritchie.
Schnatter had already resigned as CEO previous year after blaming disappointing sales on the NFL leadership's on the controversy surrounding football players kneeling during the national anthem. He was eventually forced to step down as CEO but remained chairman of the board and the face of the brand. Later in the call, Schnatter brought up his childhood in IN saying, 'people used to drag African-Americans from trucks until they died'.
"We know we can do better and I'm confident that we will", Ritchie said in May.