An investigation on behalf of current investors, who purchased shares of Emulex Corporation (Public, NYSE:ELX) prior to the proposed takeover, over potential breaches of fiduciary duty by the board of directors of Emulex Corporation was announced.

According to the investigation by a law firm the investigation focuses on possible ELX shareholder claims against the Board of Directors of Emulex Corp. arising out of their attempt to sell Emulex to Broadcom. Emulex Corp. confirmed that Broadcom Corp. launched an unsolicited bid to acquire Emulex Corp. Tuesday for about $764 million or $9.25 per ELX share. Emulex shares surged 44% to $9.54 as Wall Street anticipates a higher offer for Emulex either from Broadcom or another company. According to the investigation the transaction appears to be unfair to Emulex shareholders given the fact that, among other things, the stock of Emulex (NYSE: ELX) traded as high as $14.11 on August 22, 2008. Shares of Emulex Corp. reach $16.30 in 2008 and were down from $23.40 per share in 2007. ELX shares reach an all time high in of over $95 per share in 2000. A deal for Emulex would allow Broadcom to sell another technology used in storage networking. Broadcom reportedly had approached Emulex already in December about a possible tie-up, but Emulex wasn't interested in talking, Broadcom Chief Executive Scott McGregor said in a conference call: 'They basically said, 'No, the company isn't for sale,'' Emulex Corporation is a provider of a range of storage networking infrastructure solutions. All of Emulex products are based on internally developed application specific integrated circuits (ASICs). Emulex Corp. is located in Costa Mesa, California and had $470.19million in total revenue in 2007 and $488.30million in 2008.