Finkelstein Thompson LLP Announces Investigation of Diedrich Coffee Inc.’s Proposed Acquisition by Peet’s Coffee & Tea Inc.

Finkelstein Thompson LLP is investigating potential claims on behalf of shareholders of Diedrich Coffee Inc. (“Diedrich” or the “Company”) (Nasdaq:DDRX) arising from the Company’s announcement of its intent to go private through a merger with Peet’s Coffee & Tea Inc. (“Peet’s”) (Nasdaq:PEET).

On November 2, 2009, Peet’s announced its intent to purchase Diedrich. The deal is reported to be worth $213 million. Diedrich shareholders will receive $17.33 in cash and a fractional share of Peet’s common stock valued at $8.67, for a total of $26 per share. The Company’s stock was trading as high as $31.34 in the week preceding the merger.

The investigation is focused on the potential unfairness of the consideration to be paid to Diedrich shareholders as well as the potential unfairness of the process by which the Diedrich Board of Directors is addressing the transaction.

If you are interested in discussing your rights as a Diedrich shareholder, or have information relating to this investigation, please contact Finkelstein Thompson's Washington, D.C. offices at (877) 337-1050 or by email at contact@finkelsteinthompson.com.

Finkelstein Thompson LLP has spent over three decades delivering outstanding representation to institutional and individual clients in financial litigation, and has been appointed as lead or co-lead counsel in dozens of shareholder class actions. Indeed, the firm has served in leadership roles in cases that have recovered over $1 billion for investors and consumers.

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