An investigation on behalf of current investors ICO, Inc. (Public, NASDAQ:ICOC), who purchased the ICOC shares before December 02, 2009, over potential breaches of fiduciary duty and other violations of state law in connection with an alleged unfair takeover price was announced.

The investigation by a law firm focus on potential breaches of fiduciary duty and other violations of state law by the Board of Directors of ICO arising out of their attempt to sell IOC, Inc. to A. Schulman, Inc. On December 2 after the market closed ICO, Inc. (Nasdaq: ICOC) announced the execution of a merger agreement with A. Schulman, Inc. (Nasdaq-GS: SHLM). Under the terms of the proposed agreement the combined stock and cash transaction is valued at approximately $191.4 million and ICO, Inc. shareholders will receive approximately $6.79 per share of ICO, Inc. stock (ICOC), comprised of $3.67 in cash and $3.12 in A. Schulman stock (0.184 shares of A. Schulman stock valued at the closing price on December 2, 2009). According to ICO the Board of Directors has unanimously approved the merger with A. Schulman, Inc.

But according to an investigation by a law firm the transaction appears to be unfair to current investors of ICO, Inc. (Public, NASDAQ:ICOC) because the offer to purchase ICO, Inc. (NASDAQ:ICOC) per share appears opportunistically timed to take advantage of the current economic downturn. The investigation concerns whether the ICO, Inc. Board of Directors breached their fiduciary duties to ICO, Inc. (ICOC) shareholders by agreeing to sell the ICOC at an unfair price thereby harming ICO, Inc. and its shareholders, whether the directors of ICO, Inc. may have breached their fiduciary duties by not acting in ICOC shareholders' best interests, and the Company may not have adequately shopped itself around before entering into this transaction and, pursuant to this proposed transaction, A. Schulman, Inc. may be underpaying for ICO, Inc., thus unlawfully harming ICOC shareholders.

Shares of ICO (ICOC) traded at $6.67 per share after the announcement and at about $4.60 per share the day before the announcement. ICOC shares traded over $12 per share in 2008 and at over $16 per share in 2007.

ICO, Inc., located in Houston, Texas, manufactures specialty resins and concentrates and provides specialized polymer processing services. The specialty resins manufactured by the Company are produced into a powder form. Concentrates produced by the Company are mixed by customers with base polymer film resins to give plastic films desired characteristics. The Company also provides toll processing services, including ambient grinding, jet milling, compounding and ancillary services for resins produced in pellet form, as well as other material. ICO reported on September 30, 2007 for a 12 month period Total Revenue of $417.92million with a Net Income of $21.12million and on September 30, 2008 for a 12 month period Total Revenue of $446.70million with a Net Income of $15.31million.