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March 13, 2023
The New York Law Journal reported on a $145 million settlement secured by Silver Golub & Teitell for investors in a series of mutual funds managed by Allianz Global Investors, a U.S.-based asset management company owned by German insurance giant Allianz SE.
New York Supreme Court Justice Andrew Borrok approved the settlement, the publication reported.
AllianzGI's Structured Alpha mutual funds were an off-shoot of a suite of hedge funds advertised as capable of returning higher returns, regardless of broader market movements, via a market-neutral options strategy. However, the market turmoil of February and March 2020 exposed that AllianzGI did not maintain any hedges that would protect the funds against the market downturn.
The DOJ and SEC announced criminal and civil charges against AllianzGI US and three AllianzGI US employees in May 2022. Although the charges and restitution orders did not address mutual fund investors, SGT’s investigation and analysis of the funds revealed that mutual fund shareholders were victimized by the same activity that led to the criminal charges.
The article is available here:
New York Law Journal: Settling Class Action, AllianzGI Agrees to Pay $145 Million to Harmed Investors (subscription required)