February 03, 2015 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Lakes Entertainment, Inc. (NASDAQ:LACO), was announced concerning whether the takeover of Lakes Entertainment, Inc. by Sartini Gaming, Inc. at a value of $9.57 per share is unfair to NASDAQ:LACO stockholders.

The investigation by a law firm concerns whether certain officers and directors of Lakes Entertainment, Inc. breached their fiduciary duties owed to NASDAQ:LACO investors in connection with the proposed acquisition.

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 investigation concerns whether the offer is unfair to NASDAQ:LACO stockholders. More specifically, the investigation concerns whether the Lakes Entertainment Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.

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.