The Teamsters Local 445 Freight Division Pension Fund has filed a lawsuit alleging fraud and securities violations by Dynex Capital Inc., a real estate investment trust based in Glen Allen, Va., according to the REIT.Also included as defendants are Merit Securities Corp., a Dynex subsidiary, and certain current and former Dynex and Merit executives, Dynex reported. The suit alleges securities law violations in connection with the issuance in 1999 of Merit Series 13 securitization financing bonds, which are collateralized by manufactured housing loans, the company said. The suit also alleges fraud and negligent misrepresentations in connection with the securitization. "The company is currently evaluating the allegations made in the lawsuit and intends to vigorously defend itself against them," Dynex said. The suit was filed in the U.S. District Court for the Southern District of New York. The company can be found online at http://www.dynexcapital.com.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry