NEW YORK, March 26, 2010 (GLOBE NEWSWIRE) -- Levi & Korsinsky is investigating the Board of Directors of PLATO Learning Inc. ("PLATO" or the "Company") (Nasdaq:TUTR) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Thoma Bravo LLC ("Thomas Bravo"). Under the terms of the transaction, PLATO shareholders will receive $5.60 in cash for each PLATO share of common stock they own for a total transaction value of approximately $143 million.
For the quarter ending January 31, 2010, PLATO reported total revenues of $15.587 million and net income of $1.002 million as compared to total revenues and net income of $16.9 million and $391 thousand, respectively, for the prior quarter.
The investigation concerns whether the PLATO Board of Directors breached their fiduciary duties to PLATO stockholders by failing to adequately shop the Company before entering into this transaction and whether Thoma Bravo is underpaying for PLATO shares, thus unlawfully harming PLATO stockholders. In particular, (i) at least one analyst set a price target for PLATO stock at $6.00 per share; (ii) the offer price is only a small premium over the $5.00 price the Company's shares traded at as recently as March 23, 2010; (iii) the Company has approximately $27.65 million in cash with no debt; (iv) the Company reported net income in the first quarter of 2010 of $1.0 million, or $0.04 per share, as compared to net income of $259,000, or $0.01 per share in the first quarter of 2009; and (v) the Company announced that it expects fiscal 2010 free cash flow to grow 30% to 40% over 2009.
If you own common stock in PLATO and wish to obtain additional information, please contact us at the number listed below or visit http://www.zlk.com/tutr1.html.
Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.