Dynex To Pay $7.5M To End Securities Fraud Action

Law360, New York (October 4, 2011, 7:11 PM EDT) -- Real estate trust Dynex Capital Inc. said Tuesday that it would pay about $7.5 million to settle a New York securities class action that accused the company of lying about the safety of bonds backed by mobile home loans.

Dynex, which in June lost a bid to have the case thrown out, will deposit the money into an escrow account while it and plaintiffs work out a definitive deal to end the six-year-old suit. The plaintiffs had estimated their damages to be around $40 million, according...
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