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Allianz to Pay Over $1 Billion in SEC Settlement in Options Case

May 17, 2022, 2:15 PM

Allianz SE agreed to pay more than $1 billion to settle a case with the US Securities and Exchange Commission for concealing risks tied to options.

The SEC said in a statement on Tuesday that the firm’s Allianz Global Investors US unit and three former senior portfolio managers “concealed the immense downside risks of a complex options trading strategy they called ‘Structured Alpha.’”

As part of the SEC settlement, the regulator said that the Allianz unit admitted to defrauding investors, concealing losses and risks and violating securities laws. The conduct by the firm and its money managers became apparent when ...