• Email Us: [email protected]
  • Contact Us: +1 718 874 1545
  • Skip to main content
  • Skip to primary sidebar

Medical Market Report

  • Home
  • All Reports
  • About Us
  • Contact Us

Allianz must face investor claims over funds’ collapse, U.S. judge rules

September 30, 2021 by David Barret Leave a Comment

September 30, 2021

By Jonathan Stempel

NEW YORK (Reuters) – A U.S. judge said Germany’s Allianz SE must face investor claims it wrongly “abandoned” the investment strategies it promised to use on hedge funds that suffered massive losses as the COVID-19 pandemic shook markets early last year.

In an 81-page decision, U.S. District Judge Katherine Polk Failla in Manhattan said investors could try to show Allianz was negligent and lacked good faith in managing its Structured Alpha funds. She also dismissed some state law-based claims.

Thursday’s decision addressed 12 lawsuits, including two proposed class actions, in which investors claimed to suffer more than $4 billion of losses. The insurer faces more than two dozen such lawsuits, seeking at least $6 billion.

Allianz’s funds used complex option strategies to generate predictable returns without excessive risk, but according to the investors, imploded in February and March 2020 after quietly removing hedges designed to minimize losses.

According to court papers, the Structured Alpha Global Equity 500 fund lost three-quarters of its value, lagging its benchmark by nearly 60 percentage points. Two other funds once worth $2.3 billion were liquidated, locking in investor losses.

Failla said the investors could try to show that Allianz breached terms of a private placement memorandum for the funds, which she said the insurer portrayed as a “glorified advertising brochure, the substance of which [it] could ignore at will.”

Allianz and its lawyers did not immediately respond to requests for comment. Lawyers for investors in the proposed class actions did not immediately respond to similar requests.

On Thursday, Allianz said its top asset management executive Jacqueline Hunt was leaving her day-to-day role, and announced changes to its board.

The changes follow Allianz’s Aug. 1 announcement that the U.S. Department of Justice was investigating the Structured Alpha funds.

That probe includes a review of whether Allianz fund managers misrepresented the funds’ risks to investors, three people with knowledge of the matter said earlier in September.

Another U.S. regulator, the U.S. Securities and Exchange Commission, is also probing the funds’ collapse.

The cases include In re Allianz Global Investors US LLC Alpha Series Litigation, U.S. District Court, Southern District of New York, No. 20-05615.

(Reporting by Jonathan Stempel in New York; Editing by Cynthia Osterman)

Source Link Allianz must face investor claims over funds’ collapse, U.S. judge rules

David Barret
David Barret

Related posts:

  1. Soccer-Poland say no racism in Glik’s bust-up with England’s Walker
  2. Epic Games to shut down Houseparty in October, including the video chat ‘Fortnite Mode’ feature
  3. UK’s slow growth and rising inflation gives BoE headache – PMIs
  4. Bank of England nudges up inflation outlook, split over QE widens

Filed Under: News

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

  • Alien Abduction Or A Trick Of The Mind? A Down To Earth Explanation Of Close Encounters
  • Six Months Into Trump’s Presidency, Americans Report Record Low Pride In Being American
  • TikToker Unknowingly Handles Extremely Venomous Cone Snail And Lives To Tell The Tale
  • Scientists Sequence Oldest Egyptian DNA To Date, From A Whopping 4,800 Years Ago
  • “Uncharted Waters”: Large Hadron Collider Begins Colliding Oxygen For The First Time
  • 125,000-Year-Old Neanderthal “Fat Factory” Shows They Gorged On Bone Grease
  • On July 3, Earth Will Reach Its Farthest Point From The Sun – 152 Million Kilometers Away
  • NASA’s Perseverance Rover May Have Recorded Evidence Of Electrified Dust Devils On Mars
  • “Hymn to Babylon”: Missing Mesopotamian Text Dating Back Nearly 3,000 Years Discovered
  • Multiple New Species Of Cute Spotty And Stripy Geckos Discovered In Remote Cambodia
  • ChatGPT May Be Surprisingly Good At Piloting Spacecraft, Taking 2nd Place In Spaceflight Competition
  • Incredible Supernova Finding Shows That “Double-Detonation Mechanism” Happens In Nature
  • Soda Cans, Asthma Inhalers, And… Water Bottles? All Things That Could Explode In Your Car This Summer
  • Video: Is There An Ideal Sleeping Position?
  • If You Look Up At The Right Time Today, You Will See A Giant “X” On The Moon
  • We May Have Our Third Interstellar Visitor And It’s Nothing Like The Previous Two
  • Orcas Filmed Kissing (With Tongues) In The Wild For The First Time
  • How Easy Is It For A Country To Change Its Time Zone?
  • Earth’s First Commercial Space Station Set To Launch In 2026
  • Black Hole Moon: Rogue Planets With Weird Signatures Could Be A Sign Of Advanced Alien Life
  • Business
  • Health
  • News
  • Science
  • Technology
  • +1 718 874 1545
  • +91 78878 22626
  • [email protected]
Office Address
Prudour Pvt. Ltd. 420 Lexington Avenue Suite 300 New York City, NY 10170.

Powered by Prudour Network

Copyrights © 2025 · Medical Market Report. All Rights Reserved.

Go to mobile version