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US Department Of Justice Probes Allianz Over Funds Losses - Report

Tom Burroughes

14 September 2021

The US Department of Justice is reportedly probing funds run by German insurer and asset manager launched a probe last year. The statement said: “Allianz Global Investors US LLC has received a voluntary request for documents and information from the DOJ. Allianz is fully cooperating with the SEC and the DOJ in the investigations and has immediately started its own review of this matter.”

The firm said it has not yet made a provision for any potential costs associated with court proceedings and investigations, as the outcome or timing was unknown.

The Reuters story said that the DOJ is examining whether managers at Allianz Global Investor’s Structured Alpha Funds abandoned a strategy to protect against market crashes and how they communicated the amount of risk to investors.

The newswire said that the DOJ and Allianz declined to comment on the nature of the investigation, which could lead to criminal charges.

The Arkansas Teacher Retirement System filed a lawsuit in July 2020 seeking $774 million in damages. The report said that other pension funds involved in suits include those of New York subway workers and city of Milwaukee employees.