An investigation on behalf of current investors Abraxis Bioscience, Inc. (NASDAQ:ABII) over possible breaches of fiduciary duty by certain members of the Abraxis Bioscience board of directors in connection with the takeover attempt by Celgene Corporation was announced.

Abraxis BioScience, Inc., located in Los Angeles, California, is an integrated biotechnology company. The Company is engaged in the discovery, development and delivery of next-generation therapeutics and technologies that offer patients treatments for cancer and other critical illnesses. Abraxis Bioscience, Inc. reported an increased Total Revenue in 2009 of $359.05million, from $345.31million in 2008, and $333.69million in 2007.

On Wednesday, June 30, 2010, Abraxis BioScience Inc. (Nasdaq: ABII) and Celgene Corporation (NASDAQ: CELG) announced the signing of a merger agreement in which Celgene Corp. has agreed to acquire Abraxis BioScience. Under the terms of the merger agreement, each share of Abraxis BioScience common stock will be converted into the right to receive an upfront payment of $58.00 in cash and 0.2617 shares of Celgene common stock. The upfront payment values Abraxis BioScience at approximately $2.9 billion, net of cash. Each share will also receive one tradeable Contingent Value Right (CVR), which entitles its holder to receive payments for future regulatory milestones and commercial royalties The transaction has been approved by the Board of Directors of Abraxis BioScience.

Shares of Abraxis Bioscience, Inc. (ABII) climbed from $63.13 per share on Monday to at $73.48 per share after the announcement.

The investigation by a law firm concerns whether the Abraxis Bioscience Board of Directors breached their fiduciary to Abraxis Bioscience, Inc. (NASDAQ:ABII) stockholders by failing to adequately shop the Company prior to supporting the agreement, whether the Board of Directors breached their fiduciary duties by not seeking a deal that would provide better Abraxis Bioscience (ABII), and whether Celgene Corporation is underpaying for Abraxis Bioscience, Inc. (ABII), thus unlawfully harming ABII stockholders.