Skillsoft’s $525 Million Codecademy Deal Draws Legal Challenge

A Skillsoft Corp. stockholder is suing members of its board and a major backer, Dutch technology investor Prosus NV, over the edtech company’s $525 million acquisition of online learning platform Codecademy.

The lawsuit filed in Delaware says Prosus exploited its control over Skillsoft—through its 45% voting power and influence over a friendly board—to drive it into an overpriced deal for Codecademy, in which the Amsterdam-based firm had allegedly bought a 24% stake for about $65 million at a significantly lower valuation.

The purchase involved “extraordinary valuation gymnastics” that violated “the most elementary principles of corporate finance,” according to the filing ...