Allianz Losses in Covid-19 Downturn Spur Two More Investor Suits

Allianz SE and subsidiaries are facing new claims by pension funds who say the company’s mismanagement of their assets during the Covid-19 market downturn drove steep losses, according to a pair of lawsuits filed in Manhattan federal court.

The lawsuits accuse Allianz of abandoning the stated investment mandate and downside risk protections of its Alpha Funds vehicles, and then doubling down on risky strategies in an attempt to recoup losses during the volatile market conditions of early 2020. This “extraordinarily risky and self-interested gamble” drove hundreds of millions of dollars of losses in a matter of weeks, according to two ...