Is the Orchard buyout kosher?  Not according to New York-based firm Levi & Korsinsky, which is now investigating a possible breach of fiduciary responsibility by the Orchard Enterprises, Inc. 

On behalf of participating shareholders, Levi alleges that a more serious shopping effort should have happened before the Dimensional deal was announced.  "The investigation concerns whether the Orchard Board of Directors breached their fiduciary duties to Orchard stockholders by failing to adequately shop the Company before entering into this transaction and whether Dimensional is underpaying for Orchard shares, thus unlawfully harming Orchard stockholders," the firm offered in a statement.

But, is there another buyer in town?  The Dimensional deal is not yet finalized, and the Orchard has the luxury of taking a better offer prior to closure.  Still, Levi asserts that the price tag of $2.05 is simply too soft, especially when compared to a valuation of $2.10 on August 12th, 2009, and a 52-week high of $3.49.  The firm, which specializes in securities and shareholder litigation, is asking common shareholders to participate.