After Jo-Ann Stores, Inc announced its board members agreed to a buyout of Jo-Ann Stores, Inc. by Leonard Green & Partners, L.P. an investigation on behalf of investors in Jo-Ann Stores, Inc. (JAS) questioning whether the offer and the sale process are unfair to JAS investors was announced.

The investigation by a law firm concerns whether certain officers and directors at Jo-Ann Stores, Inc. breached their fiduciary duty owed to the shareholders of Jo-Ann Stores (NYSE:JAS) arising out of their attempt to sell Jo-Ann Stores Inc to Leonard Green & Partners, L.P.

On Thursday, Dec. 23, 2010, Jo-Ann Stores, Inc. (NYSE: JAS) announced that it has entered into an agreement to be acquired by an affiliate of Leonard Green & Partners, L.P., for a total price of approximately $1.6 billion, or $61.00 per share in cash. Jo-Ann Stores, Inc. said the offer price represents a 34% premium to the closing price of Jo-Ann's shares on December 22, 2010.

Shares of Jo-Ann Stores, Inc. (JAS) traded before the announcement at $46.09 per share and increased after the takeover news to $60.55 per share.

But the investigation concerns whether Jo-Ann Stores, Inc. and certain of its officers and directors breached their fiduciary duties owed to Jo-Ann Stores, Inc. (NYSE:JAS) investors by rushing into the transaction and failing to undertake an adequate and fair sales process to obtain fair consideration for all shareholders of Jo-Ann Stores, Inc. (Public, NYSE:JAS), specifically by entering into any transaction before adequately shop the Company before. Additionally Jo Ann Stores Inc performed well in the past for its shareholders. Jo-Ann Stores Total Revenue went from $1.85billion reported on Feb. 2, 2007 for the past 53weeks to $1.99billion reported on January 30, 2010 for the past 52weeks. Its Net Income over the same time frame went from a Net Loss to a Net Income of $66.60million. Thus a potential class action lawsuit would seek to maximize the amount of money and information JAS shareholders would receive in a buyout, so the law firm.