Jan. 22, 2013 (Shareholders Foundation) -- An investigation on behalf of current long-term stockholders of shares Vitesse Semiconductor (NASDAQ:VTSS) was announced concerning whether certain Vitesse Semiconductor officers and directors possibly breached their fiduciary duties in connection with certain statements.

The investigation by a law firm concerns whether certain Vitesse Semiconductor officers and directors breached their fiduciary duties in connection with their conduct in seeking shareholders approval for the Vitesse Semiconductors 2013 Incentive Plan.

In the Proxy Statement filed by Vitesse Semiconductor with the Securities and Exchange Commission the Board of Directors recommends that Vitesse Semiconductors shareholders vote to approve the Vitesse Semiconductor Corporation 2013 Incentive Plan. The 2013 Incentive Plan authorizes the issuance of 6,700,000 shares of Vitesse Semiconductors Common Stock.

According to the investigation the issuance of the additional shares could have a severe dilutive effect on the shares of Vitesse Semiconductor (NASDAQ:VTSS common stock.

Vitesse Semiconductor (NASDAQ:VTSS) reported that its Total Revenue declined from $165.63 million for the 12 months period that ended on Sept. 30, 2010 to $119.48 million for the 12 months period that ended on Sept. 30, 2012.

Shares of Vitesse Semiconductor (NASDAQ:VTSS) declined from as high as $5.17 per share in April 2011 to as low as $1.76 per share in December 2012.

NASDAQ:VTSS shares closed on Jan. 17, 2013 at $2.30 per share.