After Snyder's of Hanover announced its plan to take over Lance, Inc. an investigation on behalf of current investors of Lance, Inc. (NASDAQ:LNCE) over possible shareholder claims based on breach of fiduciary duty in connection with takeover attempt by Snyder's of Hanover, Inc. was announced.

Lance, Inc., located in Charlotte, NC, which offers snack food products, announced on Thursday, July 22, 2010, that Lance, Inc. (Nasdaq: LNCE) and Snyder's of Hanover, Inc signed a agreement to combine in a stock-for-stock merger of equals that will create a combined company to be called Snyder's-Lance, Inc. Under the transaction terms, shareholders in Snyder's and Lance will each own approximately 50% of the new company after the merger. Existing Lance and Snyder's options will become options in the combined Snyder's-Lance. Additionally, contingent on the closing of the transaction, existing Lance shareholders will receive a one-time $3.75 special cash dividend. According to Lance, Inc. its board of directors has unanimously recommended the approval of the transactions to their shareholders.

Lance, Inc. shares (LNCE) traded before the news at $16.21 per share and jumped to $22.38 per share in response to the takeover news. Lance shares, which were down from its 52weekHigh of $28.26 per share, traded at almost $24 per share as recent as April 29, 2010. Lance, Inc. was able to increase its Total Revenue from $762.74million in 2007, to $852.47million in 2008, to $918.16million in 2009. Its Net Income increased from $23.84million in 2007 to $35.79million in 2009.

The investigation by a law firm concerns whether Snyder's of Hanover, Inc, as well as the directors of Lance, Inc. breached their fiduciary duties by not acting in Lance, Inc. (LNCE) shareholders' best interests in connection with the sale process of Lance, Inc., whether the Lance, Inc. Board of Directors breached their fiduciary duty to Lance, Inc. (NASDAQ:LNCE) stockholders by failing to adequately shop the Company prior to entering into the agreement, whether the Board of Directors breach their fiduciary duties by not seeking a deal that will provide better value for Lance, Inc. (NASDAQ:LNCE), and whether Snyder's of Hanover, Inc is underpaying for Lance, Inc. (LNCE), thus unlawfully harming LNCE stockholders.