Allianz warns of risk, confirms US Justice Department probe

PTI | Washington DC | Updated: 02-08-2021 03:56 IST | Created: 02-08-2021 03:56 IST
Allianz warns of risk, confirms US Justice Department probe
  • Country:
  • United States

The Allianz financial services company is warning that lawsuits brought by US investors against the company could end up having a material impact on its future financial results.

The major German company made the disclosure Sunday, noting that it received a request from the US Department of Justice for documents and information related to the company's Structured Alpha Funds business, which is at the center of the investor lawsuits. The Securities and Exchange Commission launched its own probe into the matter last year.

In a statement, Munich-based Allianz SE said the Department of Justice's request, plus “information available to Allianz as of today,” prompted the company's management to conclude that there is “a relevant risk that the matters relating to the Structured Alpha Funds could materially impact future financial results of Allianz Group.” The company noted that it can't predict how much of a financial impact it could be facing at this point, given the uncertain outcome of the Securities and Exchange Commission and Department of Justice investigations, and the litigation it faces.

In an interim report last year, the company disclosed that it was facing federal lawsuits brought by investors in the US over losses in the Structured Alpha Funds during the stock market's sharp downturn in the spring of 2020 as the pandemic battered the global economy and financial markets.

At the time, Allianz said the complaints were “legally and factually flawed.'' Allianz is one of the world's biggest insurers and financial services companies. In May, the company said it had 2.432 billion euros ($2.89 billion) in total assets under management as of the end of the first quarter.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Give Feedback