An investigation on behalf of investors of Nu Horizons Electronics Corp. (NASDAQ:NUHC) over potential breaches of fiduciary duty by the NUHC board of directors in connection with the proposed takeover of Nu Horizons Electronics Corp. by Arrow Electronics, Inc. was announced.

The investigation by a law firm concerns whether Nu Horizons Electronics Corp. and its Board breached their fiduciary duties owed to NUHC investors in connection with the proposed takeover.

On Monday, September 20, 2010 Nu Horizons Electronics Corp. (Nasdaq: NUHC) announced the signing of an agreement providing for the acquisition of Nu Horizons by Arrow Electronics, Inc. (NYSE: ARW) in an all-cash transaction in which Nu Horizons Electronics Corp shareholders will receive $7.00 for each NUHC common stock they own.

But the investigation by a law firm concerns whether the sale process is unfair to the shareholders of Nu Horizons Electronics Corp. (NASDAQ:NUHC). Even though shares of Nu Horizons Electronics Corp. shares (NUHC) traded before the announcement at $3.41 per share and more than doubled to $6.89 per share in response to the news. Nu Horizons Electronics Corp. reported consistent total revenue over the past four years. Nu Horizons Electronics Corp. reported on Feb. 28, 2007 for the past 12 months $668.59million total revenue, on Feb. 28, 2008 $747.17million, on Feb. 28, 2009 $750.95million, and on Feb. 28, 2010, $670.73million. Therefore the investigation concerns whether Nu Horizons Electronics Board of Directors breached their fiduciary duties to Nu Horizons Electronics Corp. (NASDAQ:NUHC) stockholders by failing to adequately Nu Horizons Electronics Corp. before entering into the transaction.