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Robbins Umeda LLP Announces an Investigation of Crexus Investment Corporation

^{Published on 2011-09-15 11:03:17 - Market Wire}
 

SAN DIEGO--([ BUSINESS WIRE ])--Robbins Umeda LLP, a [ shareholder rights litigation ] firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Crexus Investment Corporation (NYSE: CXS).

Robbins Umeda LLP's investigation focuses on whether officials at Crexus breached their fiduciary duties to shareholders, engaged in unjust enrichment, and wasted corporate assets to the detriment of the company and investors. In particular, the firm is investigating allegations that Annaly Capital Management, Inc., which operates and controls Crexus pursuant to a management agreement, caused Crexus to engage in the acquisition of high-risk assets financed through a $575 million stock offering that has significantly diluted the value of the company's shares.

Additionally, the firm is examining allegations that officials at Crexus rejected an unsolicited merger proposal from Starwood Property Trust at $14 per share in favor of the dilutive stock offering which netted the company only $10.86 per share. After the offering, which increased the number of Crexus shares by 300%, shares of Crexus have continued to decrease in value. After trading as high as $12.81 on March 18, 2011, the company's stock closed on September 13, 2011 at just $8.43 per share.

One option available to investors of Crexus is to file a derivative action to hold those that allegedly damaged Crexus accountable. Remedies commonly sought in derivative actions include corporate governance reforms designed to prevent future misconduct, removal of officers or directors whose misconduct injured the corporation, and monetary payments in the form of damages and/or disgorgement of ill-gotten gains.

If you own shares of Crexus and would like more information about your rights, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or via the [ shareholder information form ] on our website.

Robbins Umeda LLP represents individual and institutional shareholders in derivative, direct, and class action lawsuits. The law firm's skilled litigation teams include former federal prosecutors, former defense counsel from top multinational corporate law firms, and career [ shareholder rights attorneys ]. Robbins Umeda LLP has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested. For more information, please go to [ http://www.robbinsumeda.com ].

Press release link: [ http://www.robbinsumeda.com/shareholders-rights-blog/crexus-investment/ ]

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