A nice slice of cheesecake made by Suzy's Cream Cheesecakes Inc. may be enough to satisfy the hunger of many people, but not Alexander Costigan.
Costigan, a silent partner in Suzy's, is making a move to buy control of the company that sold more than 832,000 cheesecakes during the first half of this year, according to a lawsuit filed by Costigan this month. His move comes as Suzy's is embarking on an $8 million expansion that could double the company's employment.
In the lawsuit, Costigan says that Susan and Mark Strothmann, founders of the company, agreed in August to sell him 700 shares – a transaction equaling 46% of the company. Costigan would pay the Strothmanns $1.7 million plus a royalty of a nickel for every cheesecake sold over the next five years. The royalty would translate to a payment of more than $773,000, the agreement predicts.
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