According to a press release an investigation on behalf of investors in Hifn, Inc. (NASDAQ: HIFN) over possible breaches of fiduciary duty and other violations of state law by the board of directors of Hifn, Inc. (NASDAQ: HIFN) arising out of their attempt to sell the Company to Exar Corporation was announced.

Under the terms of the proposal, Hifn's shareholders would be able to elect to receive $1.60 cash and 0.3529 Exar shares for every Hifn share they own, or $4.00 in cash. According to the investigation by a law firm the transaction is unfair given that, among other things, Hifn, Inc shares. (NASDAQ: HIFN) traded above $4.00 per share as recently as September 3, 2008 and analysts set a mean price target of $5.50 per share. The proposed acquisition is subject to customary conditions and regulatory approvals. hi/fn, Inc. (Hifn), together with its subsidiaries, Hifn Limited, Hifn Netherlands B.V. and Hifn International and its subsidiary, Hifn (Hangzhou) Information Technologies Co., Ltd., is a provider of network and storage-security, and data reduction products to network and storage original equipment manufacturers (OEMs), as well as small-and-medium enterprises (SMEs).