An investigation on behalf of investors, who currently hold shares of Cavium Inc (NASDAQ:CAVM), was announced concerning whether the takeover of Cavium Inc. by Marvell Technology Group Ltd is unfair to NASDAQ:CAVM stockholders.

The investigation by a law firm concerns whether certain officers and directors of Cavium Inc breached their fiduciary duties owed to NASDAQ:CAVM investors in connection with the proposed acquisition.

On November 20, 2017, Marvell Technology Group Ltd. (NASDAQ: MRVL) and Cavium Inc (NASDAQ:CAVM) announced an agreement, under which Marvell Technology Group Ltd will acquire all outstanding shares of Cavium Inc (NASDAQ:CAVM) common stock in exchange for consideration of $40.00 per share in cash and 2.1757 Marvell Technology Group Ltd common shares for each Cavium Inc (NASDAQ:CAVM) share. Based on a closing price of $20.29 per NASDAQ:MRVL shares on November 17, 2017, investors of Cavium Inc will receive a value of approximately $84.14 per NASDAQ:CAVM.

However, given that at least one analyst has set the high price target for NASDAQ:CAVM shares at $94.00 per share, the investigation concerns whether the offer is unfair to NASDAQ:CAVM stockholders. More specifically, the investigation concerns whether the Cavium Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.