SOURCE: Levi & Korsinsky, LLP

Levi & Korsinsky, LLP

September 01, 2011 10:59 ET

The Law Firm of Levi & Korsinsky Notifies Investors of Claims of Breaches of Fiduciary Duty Against Certain Officers and Directors of CreXus Investment Corp.

NEW YORK, NY--(Marketwire - Sep 1, 2011) - Levi & Korsinsky announces that a lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of CreXus Investment Corp. ("CreXus" or the "Company") (NYSE: CXS) common stock.

For more information, click here: http://zlk.9nl.com/crexus-cxs/.

The complaint alleges that Annaly Capital Management, Inc. ("Annaly") controls CreXus through its ownership stake in CreXus and through its subsidiary Fixed Income Advisory Company ("FIDAC"), which entered into a management agreement with CreXus. The complaint alleges that Annaly, aided and abetted by the defendants, executed a scheme to substantially increase the benefits and fees it derives from its control of CreXus by causing the Company to engage in the acquisition of a portfolio of high-risk assets financed through a highly dilutive stock offering. The complaint further alleges that the Company rejected an unsolicited merger proposal from Starwood Property Trust at $14 per share in favor of the dilutive stock offering which netted the Company $10.8675 per share.

As a result of the offering, 50,000,000 CreXus shares were released into the market thereby increasing the number of outstanding shares by more than 300 percent. As a result, shares of CreXus dropped from a $12.68 close on March 18, 2011 to as low as $9.01 per share on August 22, 2011.

If you own CreXus stock and would like to obtain additional information about your rights, please contact Joseph Levi, Esq. either via email at jlevi@zlk.com or by telephone at (877) 363-5972, or visit http://www.zlk.com/crexus-investment-cxs.html.

Levi & Korsinsky has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud and represents investors throughout the nation, concentrating its practice in securities and shareholder litigation. For more information, please feel free to contact any of the attorneys listed below. Attorney advertising. Prior results do not guarantee similar outcomes.

Contact Information

  • CONTACT:
    Levi & Korsinsky, LLP
    Joseph Levi, Esq.
    Eduard Korsinsky, Esq.
    30 Broad Street - 15th Floor
    New York, NY 10004
    Tel: (212) 363-7500
    Toll Free: (877) 363-5972
    Fax: (212) 363-7171
    www.zlk.com