There seems to be something wrong with the name of that move.
I can't imagine how one is both bent over and doing a dumbell lat pull.
(Kind of like the "lying crossbody kickback" is misnamed: you can't kick "back" if you're lying down. It's a "lying crossbody EXTENSION")
No, it's not a fly motion (out to the sides) : the arms go straight back (butt direction).But the "straight arm" part only makes sense if it's a fly motion like Kathryn said (since you can't row without bending your arms).