Sourcefire, Inc. investor investigation over buyout rumors

Oct. 25, 2010 - PRLog -- In response to buyout rumors an investigation on behalf of investors of Sourcefire, Inc.  over possible breaches of fiduciary duties was announced.

If you are a current investor in Sourcefire, Inc.  shares, and/or have any information relating the investigation, you have certain options and you should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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.  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. .

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.  and will breach their fiduciary duties to Sourcefire  shareholder by failing to adequately shop the Company before entering into any transaction.

Those who are current investors in Sourcefire, Inc. (Public, NASDAQ-FIRE) common shares, and/or have any information relating the investigation, have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.