After rumors about a potential buyout of Red Robin Gourmet Burgers, Inc. emerged an investigation on behalf of investors of Red Robin Gourmet Burgers, Inc. (NASDAQ: RRGB) over possible breaches of fiduciary duty was announced.

The investigation by a law firm concerns whether certain directors and officers at Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) or others including any insiders breached or will breach their fiduciary duties in connection with a potential takeover and also in the event of a buyout.

Shares of Red Robin Gourmet Burgers, Inc. (Public, NASDAQ:RRGB) increased in response to the takeover rumors from $20.65 on Tuesday to $21.56 per share on Thursday.

But RRGB shares traded as early as January 7, 2011 as high as $22.69 per share, at $22.61 per share in October 2010, and even at $28.55 per share in April 2010. During 2006 RRGB shares reached its all-time-high of $61.45 per share. In addition Red Robin Gourmet Burgers performance increased for its shareholders in the past. Red Robin Gourmet Burgerss 12 month Total Revenue increased from $618.72million in 2006 to $841.04million in 2009. For the first 40weeks in 2010 Red Robin Gourmet Burgers reported a combined Total Revenue of $671.69million.

Therefore the investigation monitors and concerns whether the Red Robin Gourmet Burgers Board of Directors will undertake an adequate and fair sales process in the event of a takeover to obtain the maximum consideration for all shareholders of Red Robin Gourmet Burgers, Inc. (NASDAQ:RRGB) and will breach their fiduciary duties to Red Robin Gourmet Burgers (RRGB) shareholder by failing to adequately shop the Company before entering into any transaction. A potential class action lawsuit would seek to maximize the amount of money and information RRGB shareholders would receive in a buyout, so the law firm.