In response to the buyout offer by Bain Capital Partners, LLC to take the Gymboree Corporation private at $65.40 an investigation on behalf of investors of The Gymboree Corporation (NASDAQ:GYMB) over possible breaches of fiduciary duties was announced.

The investigation by a law firm concern whether the affiliates of Bain Capital Partners, LLC, The Gymboree Corporation ,and its Board breached their fiduciary duties owed to The Gymboree Corporation (NASDAQ:GYMB) investors in connection with the proposed takeover.

On Monday, October 11, 2010 The Gymboree Corporation (Nasdaq: GYMB) and Bain Capital Partners, LLC announced that they have entered into anagreement under which affiliates of Bain Capital Partners, LLC will acquire all the outstanding stock of Gymboree for $65.40 per share, or $1.8 billion. Gymboree Corp said its board of directors unanimously agreement and the offer represents a 57.4% premium to its unaffected share price on September 30, 2010, before recent market rumors of a transaction, and a 23.5% premium to Gymboree's closing stock price on October 8, 2010, the last full trading day before today's announcement.

But the investigation by a law firm concern whether the sale process and the offered price are unfair to the shareholders of The Gymboree Corporation (NASDAQ:GYMB).

In fact shares of The Gymboree Corporation (NASDAQ:GYMB) jumped in response to the merger rumors on Friday, October 1, 2010 from $41.65 per share on Thursdays trading to $49.77 per share and GYMB got another boost on Tuesday, October 05, 2010 to $51.36 per share after a report indicated the children's clothing company could go for more than $1 billion in an auction. But when Gymboree announced the takeover on Monday, October 11, 2010, shares of The Gymboree Corporation (Public, NASDAQ:GYMB), which traded before the announcement at $52.95 per share, jumped immediately to $69.18 in pre-market or 30.65%, thus well above the current offer. In Addition Gymborees total 12 months revenue increased over the past four years from $791.64million to $1.1491billion. Its Net Income rose over the same time frame from $60.25million to $101.92million.

Therefore the investigation concerns whether the Gymboree Corp. board of directors undertook an adequate and fair sales process to obtain fair consideration for all shareholders of The Gymboree Corporation (NASDAQ:GYMB) and breached their fiduciary duties to The Gymboree Corp (NASDAQ:GYMB) shareholder by failing to adequately shop the Company before entering into the transaction with Bain Capital Partners, LLC.