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

Levi & Korsinsky is investigating the Board of Directors of DivX, Inc. (“DivX” or the “Company”) (NasdaqGS: DIVX) for possible breaches of fiduciary duty and other violations of state law in connection with their attempt to sell the Company to Sonic Solutions (NasdaqGS: SNIC). Under the terms of the transaction, DivX shareholders will receive $3.75 in cash and 0.514 shares of Sonic Solutions stock for each DivX share of common stock they own. Based on the prior closing price of Sonic Solutions stock, the transaction values DivX shares at approximately $9.83 per share for a total transaction value of approximately $323 million.

For the quarter ending March 31, 2010, DivX reported total revenue of $23.255 million and net income of $1.256 million as compared to total revenue and a net loss of $20.060 million and $34 thousand, respectively, for the prior quarter. The investigation concerns whether the DivX Board of Directors breached their fiduciary duties to DivX stockholders by failing to adequately shop the Company before entering into this transaction and whether Sonic Solutions is underpaying for DivX shares, thus unlawfully harming DivX stockholders. In particular, at least one analyst set a price target for DivX stock at $10.50 per share.

If you own common stock in DivX and wish to obtain additional information, please contact Joseph E. Levi, Esq. either via email at jlevi@zlk.com or by telephone at (212) 363-7500 or visit http://www.zlk.com/divx.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.

Divx, Inc. (MM) (NASDAQ:DIVX)
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