Allianz Settles Suits Over Multibillion-Dollar Fund Blowup

  • Plaintiffs include Blue Cross, Raytheon pension systems
  • Allianz earlier took $4.2 billion charge to cover settlements
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A group of investors suing Allianz SE over losses tied to the collapse of its U.S.-based hedge funds asked a judge to dismiss the lawsuit after agreeing to settle with the insurance giant.

Investors allege they lost billions of dollars as a result of the collapse of Allianz’s Structured Alpha hedge funds, which also prompted probes by U.S. regulators. The German company earlier this month took a $4.2 billion charge to cover settlements and related costs.