An investigation on behalf of current investors NBTY, Inc. (NYSE:NTY) over possible breaches of fiduciary duty by certain members of the NBTY board of directors in connection with the takeover attempt by The Carlyle Group was announced.

NBTY, Inc., located in Ronkonkoma, New York, is a vertically integrated manufacturer, marketer and retailer of a line of nutritional supplements in the United States and throughout the world. NBTY, Inc. reported in 2007 Total Revenue of $2.01451billion, in 2008 $2.17947billion, and in 2009 $2.58195billion.

On Thursday, July 15, 2010, NBTY, Inc. (NYSE: NTY) announced the execution of a merger agreement under which The Carlyle Group will acquire NBTY in a transaction valued at $3.8 billion. Under the terms of the merger agreement, Carlyle Group will acquire all of the outstanding common shares of NBTY for $55.00 per share in cash.

According to NBTY, Inc its board of directors of NBTY has unanimously approved the merger agreement and the offer represents a premium of approximately 57% over NBTY's average closing share price during the 30 trading days ended July 14, 2010.

The investigation by a law firm concerns whether the NBTY Board of Directors breached their fiduciary to NBTY, Inc. (NTY) stockholders by failing to adequately shop the Company prior to supporting the agreement, and whether the Board of Directors breached their fiduciary duties by not seeking a deal that would provide better NBTY, Inc. (NYSE:NTY).

Shares of NBTY, Inc. (NTY) traded before the news at $37.80 per share and jumped to its 52weekHigh of $54.08 per share after the announcement.