The announcement by Orthovita, Inc. that its board of directors agreed to a takeover of Orthovita by Stryker Corporation has prompted an investigation on behalf of investors of Orthovita, Inc. (NASDAQ:VITA) concerning whether the proposed acquisition is unfair to NASDAQ VITA stockholders and whether certain directors and officers breached their fiduciary duties.

The investigation by a law firm concerns whether certain directors and officers at Orthovita, Inc. or others breached their fiduciary duties in connection the proposed merger.

On May 16, 2011, Orthovita, Inc. (Nasdaq: VITA) announced that it has entered into a merger agreement under which Stryker Corporation (NYSE: SYK) has agreed to acquire all of the common stock of Orthovita for $3.85 per share in cash which represents a total value of approximately $316 million.

Following the buyout announcement shares of Orthovita, Inc. (NASDAQ:VITA) jumped from $2.73 on May 13 to $3.38 on Monday, May 16.

However, share prices for Orthovita, Inc. traded in the past significantly above the offer. VITA stock traded during 2009 as high as$6.52 and in 2010 as high as $4.60 per share. In addition, Orthovita, Inc. has performed well in the past. Orthovitas 12months Total Revenue increased from $58.05million in 2007 to $94.66million in 2010. Its Net Loss decreased from $29.88million in 07 to a Net Loss of $5.71million in 2010.

Therefore the investigation concerns whether the Orthovita Board of Directors undertook an adequate and fair sales process to obtain fair consideration for all shareholders of Orthovita, Inc. (NASDAQ:VITA) and breached their fiduciary duties to Orthovita (VITA) shareholder by failing to adequately shop the Company before entering into the transaction.

Orthovita, Inc said that shareholder Essex Woodlands Health Ventures Fund VII, L.P., whose representative R. Scott Barry is a member of Orthovitas Board of Directors, as well as Messrs. Tidmore and Koblish and all of Orthovitas other directors and executive officers, who collectively own approximately 14.5% of the fully diluted common stock of Orthovita, have already committed to tender their shares in the tender offer.

The investigation concerns also whether Stryker Corp. would underpay for NASDAQ:VITA shares, thus unlawfully harming NASDAQ VITA stockholders. A potential class action lawsuit would seek to maximize the amount of money and information NASDAQ:VITA shareholders would receive in a buyout, so the law firm.