In response to the recent buyout rumors an investigation on behalf of investors of EMC Corporation (NYSE:EMC) over possible breaches of fiduciary duties in connection with a potential takeover was announced.

The investigation by a law firm concerns whether EMC Corporation and its Board of Directors breach their fiduciary duties owed to EMC Corp. (NYSE:EMC) investors in the event of a proposed takeover.

Shares of EMC Corporation (NYSE: EMC) increased in response to the take over rumors from $19.46 per share on October 08, 2010 to $21.40 in after hours on October 15, 2010.

The investigation by a law firm questions whether a potential sale process and the potential price would be unfair to the shareholders of EMC Corporation (NYSE:EMC).

But EMC shares traded as early as August 04, 2010 at almost $21 per share before EMC shares fell to almost $18 per share in the end of August.

EMC Corporation reported an increase in 12 month total revenue from $11.155billion in 2006 to $14.026billion in 2009. Its Net Income thought went from $1.227billion in 2006 to $1.008billion in 2009.

Therefore the investigation focuses whether the EMC board of directors will undertake an adequate and fair sales process to obtain fair consideration for all shareholders of EMC Corporation (NYSE:EMC) and will breach their fiduciary duties to EMC Corp (EMC) shareholder by failing to adequately shop the Company before entering into any transaction.