July 18, 2014 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of Lorillard Inc. (NYSE:LO), was announced concerning whether the takeover of Lorillard Inc. by Reynolds American Inc for a value of $68.88 per share is unfair to NYSE:LO stockholders.

The investigation by a law firm concerns whether certain officers and directors of Lorillard Inc. breached their fiduciary duties owed to NYSE:LO investors in connection with the proposed acquisition.

On July 15, 2014, Reynolds American Inc. (NYSE: RAI), the parent company of R.J. Reynolds Tobacco Company, and Lorillard Inc. (NYSE:LO) announced that they have entered into a agreement in which Reynolds American Inc has agreed to acquire Lorillard Inc. (NYSE:LO) in a cash-and-stock transaction currently valued at $68.88 per Lorillard Inc. (NYSE:LO) share, or a total of $27.4 billion, including the assumption of net debt.

However, the investigation concerns whether the offer is unfair to NYSE:LO stockholders. More specifically, the investigation concerns whether the Lorillard Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.

Lorillard Inc. reported that its annual Total Revenue rose from over $6.62 billion in 2012 to $6.95 billion in 2013 and that its Net Income increased from over $1.09 billion in 2012 to $1.18 billion in 2013. Shares of Lorillard Inc. (NYSE:LO) grew from $38.20 per share in March 2013 to as high as

On July 18, 2014, NYSE:LO shares closed at $61.68 per share.