The announcement by PAETEC Holding that it agreed to be acquired by Windstream Corp. prompted an investigation on behalf of investors of PAETEC Holding Corp. (NASDAQ: PAET) concerning whether the offer to acquire PAETEC Holding and the buyout process are unfair to investors of PAETEC Holding (PAET) and whether certain of its officers and directors or others breached their fiduciary duties owed investors in NASDAQ:PAET shares.

The investigation by a law firm concerns whether the PAETEC Holding Corp., certain of its officers and directors, and/or others breached their fiduciary duties owed to PAETEC Holding (NASDAQ PAET) investors in connection with the proposed acquisition.

On August 1, 2011, PAETEC Holding Corp. (NASDAQ:PAET) announced that Windstream Corp. (Nasdaq: WIN) has entered into an agreement to acquire PAETEC Holding Corp. (Nasdaq: PAET) in a transaction valued at approximately $2.3 billion.
Under the terms of the proposed transaction PAETEC Holding (NASDAQ:PAET) shareholders will receive 0.460 shares of Windstream Corp. common stock for each NASDAQ:PAET share owned.
Based on a closing price of $ 12.21 of Windstream Corp. (Nasdaq: WIN) shares investors in PAETEC Holding (NASDAQ:PAET) stocks will receive a value of $5.61 per PAET shares they owned.

Following the announcement shares of PAETEC Holding Corp. (Public, NASDAQ:PAET) jumped from roughly $4.40 on Friday to $5.36 on Monday.

However, at least one analyst has set the high target p[rice for NASDAQ PAET stocks at $7.00 per share.

The investigation concerns whether the PAETEC Holding Board of Directors undertook an adequate and in particular breached their fiduciary duties to the PAETEC Holding Corp. (NASDAQ:PAET) shareholder by failing to adequately shop the Company before entering into the transaction.

The investigation concerns also whether Windstream Corp. would underpay for NASDAQ:PAET shares, thus unlawfully harming PAETEC Holding stockholders.

PAETEC Holding Corp. has performed well for its investors in the past. PAETEC Holdings annual Total Revenue rose from $1.04billlion in 2007 to $1.62billion in 2010. Its first quarter Revenue increased from $390.05million last year to $495.51million this year. Additionally Shares of PAETEC Holding Corp. grew at an exceptional growth rate. NASDAQ:PAET stocks grew from as low as $1.10 during March 2009 to as high as$4.86 in June 2011.

A potential securities class action lawsuit would seek to maximize the amount of money and information NASDAQ:PAET shareholders would receive in a buyout, so the law firm.