San Diego, Nov. 30, 2011 (Shareholders Foundation) -- The announcement that Synopsys, Inc intends to acquire Magma Design Automation, Inc. for $7.35 per share prompted an investigation on behalf of investors of Magma Design Automation (NASDAQ:LAVA) concerning whether the offer to acquire Magma Design Automation and the buyout process are unfair to investors of NASDAQ:LAVA and whether certain of its officers and directors or others breach their fiduciary duties owed investors in NASDAQ LAVA shares.

The investigation by a law firm concerns whether Magma Design Automation, certain of its officers and directors, and/or others breached their fiduciary duties owed Magma Design Automation, Inc. (LAVA) investors in connection with the proposed acquisition.

On Nov. 30, 2011, after the market closed, Synopsys, Inc. (Nasdaq: SNPS) announced that it has signed an agreement to acquire Magma Design Automation Inc. (Nasdaq: LAVA). Under the terms of the proposed transaction Synopsys Inc will acquire Magma Design Automation for $7.35 per NASDAQ: LAVA share in cash, resulting in a transaction value of approximately $507 million net of cash and debt acquired.

Following the takeover news NASDAQ:LAVA stocks jumped the next trading day to $7.16 per share.

However, NASDAQ: LAVA shares traded as recently as July as high as $8.45 per share, thus well above the current offer.

In addition, at least on analyst has set the high target price for NASDAQ:LAVA stocks at 11.00.

Therefore the investigation for investors concerns whether the Magma Design Automation Board of Directors undertook an adequate sales process and in particular breached their fiduciary duties to NASDAQ:LAVA shareholders by failing to adequately shop the Company before entering into this transaction. Furthermore the investigation concerns on whether Synopsys, Inc would underpay for NASDAQ:LAVA shares, thus unlawfully harming Magma Design Automation stockholders. A potential securities class action lawsuit would seek to maximize the amount of money and information LAVA shareholders would receive in a buyout, so the law firm.