processes
Allianz concludes billion-euro settlement after AGI fund debacle
A flag with the logo and lettering of Allianz in Munich: The insurance group has concluded a billion-euro settlement because of a legal dispute with major investors in the United States. Photo: Alexander Heinl/dpa
© dpa-infocom GmbH
The US Department of Justice has unveiled fraud charges against mutual fund company AGI and three leading investment managers.
The fund company Allianz Global Investors (AGI) has accepted a billion-dollar settlement with US authorities after investors complained about high losses.
The Justice Department on Tuesday released a fraud charge against the company and three top investment managers.
At the same time, the US Securities and Exchange Commission announced that it would hold the asset manager belonging to the Munich insurance company Allianz and the three accused managers responsible for a “massive fraud conspiracy”. The company has pleaded guilty to violations of US securities laws.
Fund debacle as a criminal case
Large US investors had sued AGI in 2020 because the asset manager had deviated from the agreed strategy for certain funds during the stock market tremor at the beginning of the corona pandemic, which led to billions in losses. The company initially denied the allegations. But the US authorities classified the fund debacle as a criminal case.
All in all, Allianz is paying more than five billion dollars in the US settlements that have now been agreed. According to the company, however, the sum is completely covered by provisions. In a press release, Allianz emphasized that the criminal misconduct was limited to a few individuals. This was also assessed by the US Department of Justice.