The investors of Dough Doughnuts are feeling a little empty. At least their pockets are. 

Eater reports that investors Jeffrey Zipes and Steven Klein are suing the successful pastry shop alleging that the founders, Thierry and Maya Cabiegos, Fany Gerson, and Nava Yellinek, haven't paid up profits that were promised in their contract. 

The initial contract indicates that Zipes and Klein invested $500,000 for a 40% stake in the shop to help it's expansion, while taking over business operations.

However, once Dough became a hit with their unique flavored, yeast doughnuts, the founders allegedly "pushed [Klein and Zipes] out after the bakery blew up." 

The investors told the New York Daily News, "[the founders] have made it clear... that they do not want the plaintiffs to be a part of the operation of the company and its business now that the company is successful... They have engaged in fraud, dishonesty, disloyalty, or willful misconduct."

Court papers state that the founders have "Concealed and secreted the revenue of the company and misappropriated co-mingled assets...for their personal gain." 

They go on to state that the founders "dominate and control the company from the Bed Stuy location."


Zipes and Klein are suing Dough for "$5 million in damages, for the founders to open up their financial books, and for the right to buy stock at a 50 percent discount of the market value if wrongdoing is found."

The New York Post reports that Zipes' and Klein's attorney, Steven Schlesinger, states that the founders "are having seller's remorse," in their refusal to pay promised profits. 

Fany Gerson, one of the founders and current owners, deny wrongdoing, stating "[our] priority has and always will be our customers." 

ny_resident #Doughnuts for lunch? Why not! Especially when they look this #tasty and #delicious. We need to make a serious stop at @doughdoughnuts in Brooklyn to try one... Or some! | #residentmag #residentmagazine #foodporn #doughnutporn #donutporn #sweets #foodyum #donutyum #instadonut #donutdaily #sugarrush #sugarhigh #dessert #bakery #nycbakery #chocolate #strawberry #glazed #glazeddonut #doughnutbrooklyn #doughnyc #donuts

The founders told The Post, "[it] saddens us that Zipes and Klein have seen fit to publicly air their baseless claims which will be vigorously defended. We have always conducted ourselves with the utmost integrity and we are confident this matter will show exactly that. 

Dough originally opened in Brooklyn in 2010, and quickly expanded to Manhattan with its Flatiron location in 2014. 

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[via Eater] [Feature Image Courtesy Instagram]