Allianz Sued by Milwaukee Pension Over Steep Virus Losses

A Milwaukee pension fund covering municipal workers sued Allianz SE and subsidiaries in a Manhattan federal court, alleging the company caused $286 million in pension losses by failing to mitigate risk during the Covid-19 market downturn and “doubling down” on a losing strategy.

The lawsuit, filed in the U.S. District Court for the Southern District of New York, says Allianz made an “extraordinarily risky and self-interested gamble” that wiped out hundreds of millions of dollars held by the Employees’ Retirement System of Milwaukee.

The company mishandled its Alpha Funds vehicles—which were structured to protect against volatile, declining markets like that ...