US Pension Funds Sue Allianz Over $4 Billion Losses

Pension funds for teachers, truckers and subway workers in the usa have filed suit against global asset manager Allianz for allegedly failing to safeguard their investments as markets reeled from the COVID-19 pandemic.

In the very first months of 2021, market panic round the spread of the COVID-19 pandemic resulted in vast amounts of dollars being wiped from the stock market. Allianz was forced to close two private hedge funds following severe losses in March, prompting a wave of litigation.

The various suits filed in america Southern District of New York collectively declare that investors lost around $4 billion.

The newest claims made against Allianz and it is asset management arm, Allianz Global Investors, incorporate a suit a week ago by the pension fund for that Metropolitan Transportation Authority, which operates New York's trains and buses system. 70,000 employees are associated with the fund, which made an initial investment of $200 million.

Similar lawsuits are also filed by pension funds for Arkansas teachers, the Teamster labour union, Blue Cross and Blue Shield. The suits seek a jury trial to award damages, alleging that Allianz Global Investors diverged from the means of using options to protect against short-term financial market crashes.

Allianz is currently cooperating with an SEC probe into its asset management arm.