After a media report indicated that AboveNet might be a takeover candidate an investigation on behalf of investors of AboveNet, Inc. (NYSE:ABVT) over possible breaches of fiduciary duties was announced.

The investigation by a law firm is at a preliminary stage and monitors the takeover rumors. It concerns whether AboveNet, Inc., certain of its officers and directors, and/or others breach their fiduciary duties owed to AboveNet (NYSE: ABVT) investors in connection with the takeover rumors or in the event of a takeover.

Following a media report that mentioned AboveNet, Inc as a takeover target shares of AboveNet, Inc. (NYSE: ABVT) rose in the last minutes of Tuesdays trading to $74.84 per share.

However AboveNet, Inc. (NYSE: ABVT) shares traded as recently as May 31 as high as $78.07 per share. Additionally AboveNet, Inc. has performed well for its investors in the past. AboveNets 12months Total Revenue surged from $253.60million in 2007 to $409.70million in 2010. Its Net Income rose within the same time frame from $13.80million in 07 to $69.40million in 2010. For the first quarter in 2011 AboveNet, Inc. reported increased quarterly Revenue of $114.40million compared to $97.20million a year earlier. Its Net Income for the first quarter rose from $13.60million in 2010 to $14.50million in 2011.

Therefore the investigation by a law firm questions whether a potential sale process and the potential price would be unfair to the shareholders of AboveNet, Inc. (NYSE:ABVT). The investigation focuses whether the AboveNet board of directors will in the event of a takeover undertake an adequate and fair sales process to obtain fair consideration for all shareholders of AboveNet, Inc. (NYSE ABVT) and will breach their fiduciary duties to AboveNet (ABVT) shareholder by failing to adequately shop the Company before entering into any transaction. In addition the investigation seeks also to determine if any officer, director or any insiders violated any laws in connection with the takeover rumors. The investigation concerns also whether the acquirer would underpay for NYSE:ABVT shares, thus unlawfully harming AboveNet (ABVT) investors. A potential class action lawsuit would seek to maximize the amount of money and information AboveNet shareholders would receive in a buyout, so the law firm.