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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.

This past Friday, 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 this past Friday.

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."

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