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Jared Fogle's ex-wife sues Subway, claims chain knew of husband's 'depravities' and failed to act

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INDIANAPOLIS -- Former Subway pitchman Jared Fogle's ex-wife filed a lawsuit against the business Monday alleging it knew about her husband's "depravities" and failed to act.

Attorneys from Church, Church, Hittle & Antrim filed the suit on behalf of Katie McLaughlin in Hamilton County Superior Court on Tuesday.

McLaughlin finalized her divorce with Fogle in November after he was sentenced to more than 15 years in federal prison for possession of child pornography and traveling across state lines to have sex with minors. The two had been married for five years, and have two children together.

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In the lawsuit, McLaughlin alleges Subway knew about Fogle's sexual interactions with minors and failed to act.

"On at least three occasions during Jared's tenure with Subway, Subway received reports regarding Jared's sexual interest in and activity with children," the complaint reads. "With two of those reports, Subway responded by sending a public relations employee to ask Jared about the allegations. With the third report, Subway admitted the complaint was not 'properly escalated or acted upon.' Upon information and belief, Subway did not report any of the allegations to law enforcement."

McLaughlin's attorneys claim Subway knew as early as 2004 that Fogle had approached a young girl at a promotional event for a Las Vegas Subway franchise for a sex act.

"Driven by sales rather than the safety of kids, Subway sent its then senior public relations manager to ask Jared and the franchise owner, rather than the victim, about the incident," the suit claims.

The lawsuit also claims former Subway CEO Jeff Moody failed to appropriately respond to reports from Florida Subway franchisee Cindy Mills that Fogle had made "disturbing comments about children," including telling her that he "really liked them young" and that he had sex with minors from age 9-16.

"In response to Mills' report, Moody interrupted Mills and stated, 'Please don't tell me any more. Don't worry, he has met someone. She is a teacher and he seems to love her very much, and we think she will keep him grounded,'" the lawsuit says.

MORE | Jared Fogle's wife seeks divorce | Fogle, wife finalize divorce | Fogle files lawsuit against former friend Russell Taylor

McLaughlin also claims in the suit that Subway used her and her children's likenesses in their commercials without her consent

The lawsuit requests a jury trial on multiple charges alleged against Subway, including invasion of privacy, intentional infliction of emotional distress and negligence.

At a press conference Monday afternoon, McLaughlin spoke about her decision to file the lawsuit.

"When the FBI banged on my door, I thought it was the worst day of my life," she said. "I had no idea the nightmare was only beginning. First, let me say to the victims of my ex-husband: You are never far from my thoughts and prayers. I can't imagine what you're going through."

McLaughlin said she is filing the lawsuit now to seek answers for herself and her children.

"Finding out that your husband and the father of your children is a child predator is devastating," she said. "I filed this lawsuit because I have questions -- questions that somebody my children will ask me. Questions like, what did Subway know? What questions did they ask? What steps did they take? Where did this all begin?"

She said she's filing the lawsuit now even though she knows it will put her in the public eye that she has avoided because she thinks her children deserve those answers.

"I have a 3-year-old and a 5-year-old who now ask me every day about jail and where their daddy is," she said.

The lawsuit doesn't list a specific amount of damages McLaughlin is seeking.

A spokesperson released a brief statement on behalf of Subway in response to the lawsuit, "As this is pending legal action, we cannot provide comment."

Here is Katie McLaughlin's complete statement to the media:

“When the FBI banged on my door on July 7th, 2015, I thought it was the worst day of my life.  I had no idea that the nightmare was just beginning.  Like the rest of America, I was shocked by what I learned in the weeks and months to follow.

“First let me say, to the victims of my ex-husband, you are never far from my thoughts and prayers. I can only imagine what you have been going through. A mother’s most basic instinct is to protect her children and this is one of the most horrific of crimes. I know the healing process is lifelong.

“Finding out that your husband and the father of your children is a child predator, and knowing that his job involved him visiting schools on a regular basis is devastating.

“Finding out that Subway did not act upon at least one complaint while continuing to utilize Jared as their spokesperson and facilitate his visits to those hundreds of schools is beyond comprehension.

“I filed this lawsuit because I have questions. Questions that someday my children will ask me and that I imagine the families of the 14 victims are asking.  Questions to which I have no other way to get answers.  Questions like what did Subway know and when did they know it?  What investigations, if any, did they conduct? Did they ever notify the authorities?

“I also filed this lawsuit because I am seeking damages from Subway. As the complaint alleges, there have been news reports that Subway received at least one complaint that Jared had sexual interest in children.  Subway even took the step of marketing him as a family man and used my children’s and my likenesses in that campaign.  I did not give them the consent to do this.

“This is not a position I ever wanted to be in.  Bringing this lawsuit was not an easy decision to make.  I am by nature and practice a very private person.  I have kept my children out of the public arena, despite their father’s career, arrest, and conviction.

“I actually want to thank you all in the media for respecting my privacy and the privacy of my children over the past year.  I recognize that filing a lawsuit is taking a public step.  However, I chose to make this statement today, rather than risk media presence at my home and in my neighborhood.  I would ask that you please continue to respect my privacy and the privacy of my children.”