U.S. pension funds sue Allianz after $4 bln in coronavirus losses
Pension funds for truckers, teachers and subway workers have lodged lawsuits in the United States against Germany’s Allianz, one of the world’s top asset managers, for failing to safeguard their investments during the coronavirus market meltdown.
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Market panic around the virus that resulted in billions in losses earlier this year scarred many investors, but no other top-tier asset manager is facing such a large number of lawsuits in the United States connected to the turbulence.
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In March, Allianz ALVG.DE was forced to shutter two private hedge funds after severe losses, prompting the wave of litigation the company says is “legally and factually flawed”.
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Together, the various suits filed in the U.S. Southern District of New York claim investors lost a total of around $4 billion.
The fallout has also prompted questions from the U.S. Securities and Exchange Commission, Allianz has said.
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