An investigation on behalf of current investors Playboy Enterprises, Inc. (NYSE:PLA) over possible breaches of fiduciary duty by certain members of the Playboy Enterprises board of directors in connection with the takeover attempt by Hugh M. Hefner was announced.

Playboy Enterprises, Inc., located in Chicago, IL, is a global media and lifestyle company. Its programming and content are available worldwide on television networks, Websites, mobile platforms and radio. Playboy Enterprises, Inc. reported in 2007 Total Revenue of $339.84million, in 2008 $292.15million, and in 2009 $240.35million.

On Monday, July 12, 2010, Playboy Enterprises, Inc. (NYSE: PLA, PLAA) announced that its board of directors has received a proposal from Hugh M. Hefner to acquire all of the outstanding shares of Class A and Class B common stock of Playboy Enterprises not currently owned by Hefner for $5.50 per share in cash. Hugh M. Hefner owns 69.5% of Playboy Enterprisess Class A common stock and 27.7% of Playboy Enterprises's Class B common stock.

The investigation by a law firm concerns whether the Playboy Enterprises Board of Directors breached their fiduciary to Playboy Enterprises, Inc. (NYSE:PLA) stockholders by failing to adequately shop the Company prior to supporting the agreement, whether the Board of Directors breached their fiduciary duties by not seeking a deal that would provide better Playboy Enterprises (NYSE:PLA), and whether Hugh M. Hefner is underpaying Playboy Enterprises, Inc. (PLA), thus unlawfully harming PLA stockholders.

Shares traded before the news at almost $4 per share and climbed to its 52weekHigh of $5.36 per share after the announcement. PLA shares traded over $8.60 per share in 2008, at almost $12 per share in 2007, and over $15 per share in 2006.