According to the company, in the 1980's, Mr. Allen Stoltzfus was frustrated with trying to learn Russian in a classroom setting and wanted to simulate his experiences learning German while in Germany. Mr. Stoltzfus found it was much easier learning German through immersion than through methods traditionally used in schools, and he wanted to use computing technology to simulate a similar learning experience. He enlisted the aid of his brother-in-law, Dr. John Fairfield, who held a PhD. in computer science.
By 1992, CD-ROM technology made the project possible and they formed a company known as Fairfield Language Technologies in Harrisonburg, Virginia. Allen and John brought on Eugene Stoltzfus, Allen's brother, as company President and CEO, and released their software product under the name Rosetta Stone. In 2003, the company came under new leadership with the announcement of Tom Adams as President and CEO, a businessman with international experience. The company changed names in 2006 to Rosetta Stone, Ltd., and with it came a change from an S Corp to a C Corp and the sale to investment firms ABS Capital Partners and Northwest Equity Partners. On September 23, 2008, Rosetta Stone Inc. filed an Initial Public Offering with the Securities and Exchange Commission.