Annaly REIT 'Externalization' Clouds Pay Practices, Suit Says

Law360, New York (July 12, 2013, 11:58 PM ET) -- An investor in Annaly Capital Management Inc. filed a derivative action Thursday challenging the “externalization” of the real estate investment trust, suggesting the transfer of its management to a private company owned by its executives was intended to avoid scrutiny of “indefensible” executive pay practices.

Jeffrey Doppelt's suit alleges Annaly's directors breached their fiduciary duty by approving the externalization without requiring any monetary consideration for the transfer of its management capability, without assessing the value of the transfer, and without disclosing that they could limit executive...
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