Levi & Korsinsky, LLP Investigates Possible Breach of Fiduciary Duty by the Board of Diedrich Coffee Inc.

Levi & Korsinsky is investigating the Board of Directors of Diedrich Coffee Inc. (“Diedrich Coffee” or the “Company”) (NasdaqCM: DDRX) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Peet's Coffee & Tea Inc. ("Peet's") (NasdaqGS: PEET). Under the terms of the transaction, Diedrich Coffee shareholders will receive $17.33 in cash plus a fraction of a Peet's share valued at about $8.67, based on the closing price of Peet's stock the last trading day prior to the announcement, for a total transaction value of approximately $213 million.

For the fiscal year ending June 24, 2009, the Company reported total revenue and net income of $62.31 million and $1.592 million, respectively, as compared to total revenue of $46.340 million and a loss of $13.776 million for the fiscal year ending June 25, 2008. The investigation concerns whether the Diedrich Coffee Board of Directors breached their fiduciary duties to Diedrich Coffee shareholders given that the Company's stock has traded at $31.34 per share as recently as October 26, 2009 and at least one analyst has set a price target for Diedrich Coffee stock at $35.00 per share.

If you own common stock in Diedrich Coffee and wish to obtain additional information, please contact us at the number listed below or visit http://www.zlk.com/ddrx1.html.

Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation.

Diedrich Coffee (MM) (NASDAQ:DDRX)
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