Feb. 26, 2013 (Shareholders Foundation) -- An investigation on behalf of current long-term stockholders of shares of M.D.C. Holdings, Inc. (NYSE:MDC) was announced concerning whether certain M.D.C. Holdings officers and directors possibly breached their fiduciary duties in connection with certain statements.

The investigation by a law firm concerns whether certain M.D.C. Holdings officers and directors breached their fiduciary duties in connection with their conduct in seeking shareholders approval for executive compensation.

In the Proxy Statement filed by M.D.C. Holdings, Inc. with the Securities and Exchange Commission the Board of Directors recommends that M.D.C. Holdings shareholders vote to approve an amendment to the MDC 2011 Equity Incentive Plan, authorizing 1,600,000 shares of Common Stock to be available for issuance. The proxy also recommends that shareholders approve an advisory vote on executive compensation.

According to the investigation the issuance of the additional shares could have a severe dilutive effect on the shares of NYSE:MDC common stock.

M.D.C. Holdings, Inc.reported that its annual Total Revenue rose from $843.11 million in 2011 to over $1.2 billion in 2012 and that its Net Loss of $98.39 million in 2011 turned into a Net income of $62.70 million in 2012.

Shares of M.D.C. Holdings, Inc. (NYSE:MDC) grew from as low as $16.67 per share in December 2011 to as high as $40.55 per share in late January 2013.