Archipelago Learning, Inc. (NASDAQ:ARCL) Investor files Lawsuit against Directors to Block Takeover

PRLog (Press Release) - Mar. 20, 2012 - An investor in NASDAQ:ARCL shares filed a lawsuit in State Court against directors of Archipelago Learning, Inc. in effort to block the proposed takeover of Archipelago Learning, Inc. by PLATO Learning for $11.10 per NASDAQ:ARCL.

If you are a current investor in Archipelago Learning, Inc. (NASDAQ:ARCL) shares and purchased your NASDAQ:ARCL shares prior to March 5, 2012, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties owed to NASDAQ:ARCL stockholders arising out of the attempt to sell Archipelago Learning, Inc. at an unfair price via an unfair process.


On March 5, 2012, Archipelago Learning (NASDAQ: ARCL) announced that it has entered into an agreement under which PLATO Learning, a portfolio company of Thoma Bravo, LLC, will acquire Archipelago Learning for $11.10 per share in cash, representing an equity value of approximately $291 million.  

However, the plaintiff claims that the $11offer is unfair to NASDAQ:ARCL stockholders and undervalues the company. Indeed, at least one analyst has set the high target price at $12.00 per share. Furthermore, Archipelago Learning’s performance increased lately. It reported that its annual Revenue rose from $18.25million in 2007 to $58.65million in 2010 and its Net Income increased from $2.92million for ’07 to $3.29million in 2010. Archipelago Learning’s third quarter Revenue rose from $17.05million in 2010 to $18.22million in 2011  and its third quarter Net Income increased from $1.38million in 2010 to $1.99million in 2011.

Furthermore, so the plaintiff, Defendants also agreed to lock-up the deal with, among other things, a “no solicitation” clause that prevents Archipelago Learning from soliciting and, subject to certain exceptions, providing confidential information to potential competing bidders and a provision that required Archipelago Learning to pay PLATO Learning a termination fee of $10,184,134 in the event that Archipelago Learning terminates the deal in favor of a superior offer from an unsolicited buyer.

Those who are current investors in Archipelago Learning, Inc. (NASDAQ:ARCL) and purchased their NASDAQ:ARCL shares prior to the announcement, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, which does research related to shareholder issues and informs investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

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