CreXus Faces Investor Suit Over Nixed $254M Buyout

Law360, New York (April 13, 2011, 1:51 PM EDT) -- A CreXus Investment Corp. investor filed a class action in New York on Tuesday claiming the company’s management wronged shareholders when it rejected Starwood Property Trust Inc.’s $254 million buyout offer in favor of a dilutive stock offering.

The CreXus board of directors sacrificed shareholder well-being in order to entrench its control over the real estate investment trust, forging ahead with a public offering to raise $575 million rather than accept Starwood’s alluring offer, according to the complaint filed in the Supreme Court of the State...
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