August 26, 2014 (Shareholders Foundation) - An investigation on behalf of current long-term investors in shares of BioFuel Energy Corp. (NASDAQ:BIOF) shares was announced over potential breaches of fiduciary duties by certain officers and directors at BioFuel Energy relating to BioFuel Energy Corps reverse takeover led by JBGL Builder Finance LLC, a real estate joint venture led by Greenlight Capital, Inc., BioFuel's largest shareholder, for $275 million.

The investigation by a law firm concerns whether certain BioFuel Energy officers and directors breached their fiduciary duties and caused damage to the company and its shareholders.
BioFuel Energy Corp. is exiting the ethanol business and becoming a real estate venture affiliate of Greenlight Capital. Greenlight Capital, BioFuel Energy Corp.s largest shareholder, is funding the reverse takeover with $150 million in debt with an 10% fixed interest rate and a $70 million rights offering. Under the rights offering, each holder will be able to purchase shares at only 80% of the Company's 10-day average closing price in an amount not exceeding $5.00 per share.

However, shares of BioFuel Energy Corp. (NASDAQ:BIOF) grew from $1.45 per share in November 2013 to as high as $11.55 per share on August 15, 2014. BioFuel Energy Corp. reported that its annual Net Loss declined from $39.84 million in 2012 to $39.21 million in 2013.