In response to the recent buyout rumors an investigation on behalf of investors of Seagate Technology PLC (NASDAQ:STX) over possible breaches of fiduciary duties in connection with a potential takeover was announced.

The investigation by a law firm concerns whether Seagate Technology PLC and its Board of Directors breach their fiduciary duties owed to Seagate Technology PLC (NASDAQ:STX) investors in the event of a proposed takeover.

Shares of Seagate Technology PLC (NASDAQ: STX), which traded at almost $13 per share days before the confirming news, jumped to $15.32 per share in after hours trading in response to the announcement. Seagate Technology PLC (NASDAQ: STX) shares continued to increased to over $15.50 the following trading day.

The investigation by a law firm questions whether a potential sale process and the potential price would be unfair to the shareholders of Seagate Technology PLC (NASDAQ:STX).

But STX shares traded as high as $15 per share as early as July 2010 and as high as over $20 per share in April, March and February 2010. STX shares were regaining value from its 10 year low in the beginning of 2009 of $3.11 per share.
After a weaker 2009 with $9.8billion from $12.7billion in 208 Seagate Technology PLC was able to report on July 02, 2010 for the past 52weeks total revenue of $11.3billion. Its Net Income went from a Net Income of $1.25billion in 2008 to a Net Loss of $3.125billion in 2009 to a Net Income of $1.609billion reported on July 02, 2010.

Therefore the investigation focuses whether the Seagate Technology PLC board of directors will undertake an adequate and fair sales process to obtain fair consideration for all shareholders of Seagate Technology PLC (NASDAQ:STX) and will breach their fiduciary duties to Seagate Technology (STX) shareholder by failing to adequately shop the Company before entering into any transaction.