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Investing.com – Allianz (DE:ALVG) stock fell 7% in Frankfurt as the U.S. Department Of Justice initiated a probe into allegations it had failed to safeguard pension money belonging to truck drivers, teachers, subway workers and various other classes during the pandemic.
The German insurer said its management has concluded there is a relevant risk that the issue could materially impact financial results of Allianz.
Lawsuits in the U.S. allege that Allianz Global Investors, in its Structured Alpha family of funds, strayed from a strategy of using options to protect against a short-term financial market crash.
Panic selling in the wake of the pandemic in February and March last year hit many investors.
Together, the various suits filed in the U.S. Southern District of New York claim investors lost a total of around $4 billion, according to Reuters.
