February 17, 2015 (Shareholders Foundation) - An investor, who currently holds shares of Lakes Entertainment, Inc. (NASDAQ:LACO), filed a lawsuit in effort to halt the proposed takeover of Lakes Entertainment, Inc. by Sartini Gaming, Inc. at a value of $9.57 per share.
The plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:LACO stockholders by agreeing to sell Lakes Entertainment, Inc. too cheaply via an unfair process to Sartini Gaming, Inc

On January 26, 2015 Lakes Entertainment, Inc. (NASDAQ:LACO) and Sartini Gaming, Inc. (“Golden Gaming”), which owns and operates Golden Gaming, LLC, announced that they have entered into an Agreement and Plan of Merger. Under the terms of the Merger Agreement, Lakes Entertainment, Inc. (NASDAQ:LACO) is valued at$9.57 per share, subject to working capital and various other adjustments under the Merger Agreement.

However, the plaintiff claims that the $9.57-offer is too low and undervalues Lakes Entertainment, Inc. Indeed, Lakes Entertainment, Inc. reported that its Total Revenue increased from $10.95 million for the 52 weeks period that ended on December 30, 2012 to $38.79 million for the 52 weeks period that ended on December 29, 2013 and that its respective Net Income increased from $3.22 million to $18.65 million. Shares of Lakes Entertainment, Inc. (NASDAQ:LACO) traded in October 2014 as high as $8.55 per share. In addition, the plaintiff claims that the process is also unfair to NASDAQ:LACO stockholders.