Robbins LLP: Acquisition of Lakes Entertainment, Inc. (LACO) by Sartini Gaming, Inc. May Not Be in Shareholders’ Best Interests
Robbins LLP is investigating the proposed acquisition of Lakes Entertainment, Inc. (NASDAQGM: LACO) by Sartini Gaming, Inc. On January 26, 2015, the two companies announced the signing of a definitive merger agreement pursuant to which Sartini Gaming, Inc. will acquire Lakes Entertainment. Under the terms of the agreement, Lakes Entertainment shareholders will receive stock in the new company valued at $9.57 for each share of Lakes Entertainment common stock.
Is the Proposed Acquisition Best for Lakes Entertainment and Its Shareholders?
Robbins LLP’s investigation focuses on whether the board of directors at Lakes Entertainment is undertaking a fair process to obtain maximum value and adequately compensate its shareholders.
On November 7, 2014, Lakes Entertainment released its earnings results for its third quarter 2014, reporting strong quarterly earnings. Specifically, the company reported total net revenues for the third quarter fiscal 2014 of $15.9 million, compared with $15.5 million for the comparable quarter in fiscal 2013, representing a 3% year-over-year growth. Further, total net revenues for the first nine months of fiscal 2014 totaled $42.3 million, compared with $27.3 million for the first nine months of fiscal 2013. In commenting on these results, Lakes Entertainment President and Chief Financial Officer Tim Cope highlighted that “Rocky Gap operations continued to perform well during the third quarter of this year.”
In light of these facts, Robbins LLP is examining Lakes Entertainment board of directors’ decision to sell the company now rather than allow shareholders to continue to participate in the company’s continued success and future growth prospects.
Lakes Entertainment shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information.
Lakes Entertainment shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, or you can complete the form below and we will contact you directly.