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Sourcefire, Inc. Board Faces Investor Investigation Over Buyout Rumors

  • If you are a current investor in Sourcefire, Inc. (NASDAQ:FIRE) shares, and/or have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this investigation, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Investigation Overview

Company
Sourcefire
Security
NASDAQ: FIRE

Summary

In response to buyout rumors an investigation on behalf of investors of Sourcefire, Inc. (NASDAQ:FIRE) over possible breaches of fiduciary duties was announced.

The investigation by a law firm concerns whether Sourcefire, Inc. and certain of its officers and directors breach their fiduciary duties owed to Sourcefire, Inc. (NASDAQ:FIRE) investors in the event of a takeover.

Shares of Sourcefire (FIRE), which traded as low as roughly $5 per share in the end of 2008, increased to almost $27 per share in 2009. During 2010 FIRE shares traded as low as $17.26 per share in July and increased recently to as high as over $30 per share.

The investigation by a law firm questions whether a potential sale process and the potential price would be unfair to the shareholders of Sourcefire, Inc. (NASDAQ:FIRE).

Sourcefire, Inc has reportedly received over the past few years a number of takeover approaches, including offers from Barracuda Networks and Check Point Software Technologies.

A recent media report cited a source saying it is amazing that Sourcefire with a market cap at just north of $800 million is still independent. The media reports source said Sourcefire is bite size for a number of logical buyers, including IBM, Oracle and Dell, which are holding off until they can see the benefits of combining various security and software businesses.

Sourcefires 12 month total revenue more than doubled from 2006 to 2009. Its 12 monnth total revenue went from $44.93million in 2006 to $103.47million in 2009. Sourcefire reported in the first quarter 2010 $25.83million in Total revenue and in the second quarter 2010 $30.61million. Sourcefire was able to get from a Net Loss of $4.75million in 2006 to a Net Income of $8.88million in 2009. So far Sourcefire reported $.081million Net Income for the first quarter 2010 and $10.55million for the second quarter 2010.

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

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