It will be uncomfortable for the Munich insurance giant Allianz: In the wake of a wave of lawsuits from US investors who are demanding compensation from the group for billions in losses in the pandemic, the US Department of Justice has now also intervened.
The Munich insurance group Allianz is confronted with a wave of claims for damages in the USA – after the US stock exchange regulator, the US Department of Justice (DOJ) has now also intervened.
The plaintiffs accuse the Munich-based asset manager Allianz Global Investors (AGI) of corona-related losses of billions. As a result, the Allianz share on the Frankfurt Stock Exchange plummeted by seven percent by noon on Monday – the lowest level since January.
Investors are said to have lost around four billion dollars
Employees of the New York subway, the teachers’ pension fund in the state of Arkansas and the Teamsters union had sued. Specifically, it concerns two so-called alpha funds of AGI, which made significant losses in 2020. The plaintiffs accuse the AGI managers of not having reacted adequately to market developments in the early phase of the corona pandemic. According to information from the news agency “Reuters”, the complaints show that investors have lost around four billion US dollars. A year ago, Allianz dismissed the allegations as “legally and factually flawed”.
However, interference by the DOJ changes the situation. The Allianz board of directors has “come to the conclusion that there is a relevant risk that the matters related to the Structured Alpha Funds could have a significant impact on the future financial results of the Allianz Group,” according to a press release from the group. According to its own information, Allianz is fully cooperating with the securities regulator and the US Department of Justice and has “immediately initiated its own review of the matter.”
Allianz has not formed any provisions – because the outcome is unclear
The Frankfurt-based AGI is the smaller of the two Allianz asset management companies – the US subsidiary Pimco is significantly larger. This also explains why Allianz’s asset management team got through the crisis year 2020 relatively unscathed – according to the annual report, this is mainly due to Pimco.
Allianz has not yet made any provision for any litigation costs. It is currently neither possible to predict the outcome of the investigations, the costs of the legal proceedings, nor possible fines.
swell:; ; DPA
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
