August 5, 2013 (Shareholders Foundation) - An investigation on behalf of current long-term stockholders of shares of Otelco Inc (NASDAQ:OTT) was announced concerning whether certain Otelco officers and directors possibly breached their fiduciary duties in connection with certain statements.

The investigation by a law firm concerns whether certain Otelco officers and directors breached their fiduciary duties in connection with their conduct in seeking shareholders approval for the Companys 2013 Stock Incentive Plan.

In the Proxy Statement filed by Otelco Inc. with the Securities and Exchange Commission the Board of Directors recommends that Otelcos shareholders vote to approve the Companys 2013 Stock Incentive Plan to make 344,859 shares available for issuance.

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

Otelco Inc reported that its annual Total Revenue declined from $101.84 million in 2011 to $98.40 million in 2012 and that its Net Income of $2.20 million in 2011 turned into a Net Loss of $126.90 million in 2012.

Shares of Otelco Inc (NASDAQ:OTT) declined from as high as $20.01 per share in early Janaury 2011 to as low as $1.28 per share in late January 2013.

The Total Compensation of certain top officials at Otelco Inc increased between 2011 and 2012. For instance, the President, Director, and CEOs pay increased from over $399,000 in 2011 to over $479,000 in 2012 and the CFO and Secretarys total compensation rose from over $246,000 in 2011 to over $280,000 in 2012.