Allianz warns legal battle over ‘Structured Alpha’ funds might turn costly
Insurance company under investigation in US over investment decisions that triggered lawsuits
August 1, 2021 9:06 pm by Olaf Storbeck in Frankfurt
Allianz is warning that an escalating legal dispute over actions taken by some of its investment funds in the US during the early days of the pandemic last year may result in a painful financial hit.
The warning was issued after the US Department of Justice launched an investigation into the issue and Allianz’s management board was briefed on “information” gathered in an internal probe into the matter.
Allianz has been under fire from investors since last summer, when several lawsuits over so-called Structured Alpha Funds were filed. The funds run by its asset management subsidiary, Allianz Global Investors, suffered heavy losses during the market crash in the first stage of the pandemic last year.