Crexus Investors Challenge $840M REIT Buyout

Law360, New York (November 19, 2012, 6:30 PM EST) -- Crexus Investment Corp. shareholders launched a derivative suit Friday seeking to block the $840 million sale of the real estate investment trust's outstanding shares to Annaly Capital Management, claiming Annaly had an unfair hold on the Crexus board before the deal was made.

Annaly, the largest publicly listed REIT in the country, owned 12.4 percent of Crexus' common stock before the proposal, and Crexus was externally managed by an Analy subsidiary, giving it unfair access to nonpublic information about the company that other bidders could not...
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