Following recent takeover rumors an investigation on behalf of investors of Cree, Inc. (NASDAQ:CREE) over possible breaches of fiduciary duties was announced.

The investigation by a law firm concerns whether Cree Inc., certain of its officers and directors, and/or others breached their fiduciary duties owed to Cree, Inc. (NASDAQ:CREE) investors in connection with the recent takeover rumors.

Cree, Inc has performed well in the past. Crees 52/53week Total Revenue more than doubled over the past four filing periods. Its Total Revenue increased from $394.12million reported on June 24, 2007 to $867.29million reported on June 27, 2010. Its Net Income almost tripped and rose within the same time frame from $57.33million to $152.29million

Shares of Cree, Inc. increased from as low as $13.13 in the end of 2008 to over $80 in 2010.

In January 2011 CREE shares traded as high as $69.20 per share and during February and March over $50 per share.

Therefore the investigation by a law firm questions whether a potential sale process and the potential price would be unfair to the shareholders of Cree, Inc. (NASDAQ:CREE). The investigation focuses whether the Cree board of directors would in the event of a takeover undertake an adequate and fair sales process to obtain fair consideration for all shareholders of Cree, Inc. (NASDAQ:CREE) and will breach their fiduciary duties to Cree 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 recent takeover rumors. The investigation concerns also whether the acquirer would underpay for NASDAQ:CREE shares, thus unlawfully harming Cree investors. A potential class action lawsuit would seek to maximize the amount of money and information NASDAQ: CREE shareholders would receive in a buyout, so the law firm.