After rumors about a potential sale of American Eagle Outfitters emerged an investigation on behalf of investors of American Eagle Outfitters (NYSE:AEO) over possible breaches of fiduciary duty was announced.

The investigation by a law firm concerns whether certain directors and officers at American Eagle Outfitters (NYSE:AEO) or others breached or will breach their fiduciary duties in connection with a potential takeover and also in the event of a buyout.

Shares of American Eagle Outfitters (NYSE: AEO) increased in response to the takeover rumors from $14.55 on Thursday to $16.14 per share.

But AEO shares traded as high as $17.16 per share as recently as November 23, 2010 and as high as $19.34 per share in April 2010. During 2007 American Eagle Outfitters shares reached its all-time-high over $34 per AEO share. American Eagle Outfitters reported relatively stable revenue over the past four 52week filing periods ranging from $2.794billion to $3.055billion. Its Net Income over the past four 52week filing periods ranged from $169.02million to $400.02million.

Therefore the investigation monitors and concerns whether the American Eagle Outfitters Board of Directors will undertake an adequate and fair sales process in the event of a takeover to obtain the maximized consideration for all shareholders of American Eagle Outfitters (NYSE:AEO) and will breach their fiduciary duties to American Eagle Outfitters (AEO) shareholder by failing to adequately shop the Company before entering into any transaction. A potential class action lawsuit would seek to maximize the amount of money and information NYSE AEO shareholders would receive in a buyout, so the law firm.