Blue Cross Settles Aon Lawsuit Over Allianz Fund Collapse (1)

A Blue Cross and Blue Shield benefits unit and its investment adviser, Aon Investments USA, have settled litigation over who was responsible for committing $3 billion to a group of ill-fated hedge funds run by Allianz Global Investors US.

The dispute involved the Blue Cross and Blue Shield Association National Employee Benefits Committee’s multi-billion investment in Allianz Structured Alpha hedge funds, which collapsed amid the mayhem of the early pandemic in 2020.

The parties have settled all claims and counter-claims, and each will bear its own expenses in the litigation, according to a filing Thursday in Manhattan federal ...