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Allianz Fund Collapse Ends in Guilty Plea, $5.8 Billion Deal

  • Funds sold as safer in a market crash lost $7 billion
  • Allianz accepts ‘corporate responsibility’ for ‘isolated’ acts
Bloomberg business news
WATCH: A unit of Allianz agreed to pay $5.8 billion and pleaded guilty to fraud after misrepresenting the risk posed by a group of hedge funds that collapsed during pandemic market gyrations.Source: Bloomberg
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A unit of Allianz SE pleaded guilty to fraud and agreed to pay $5.8 billion after misrepresenting the risk posed by a group of hedge funds that collapsed amid pandemic market gyrations.

The deal announced Tuesday brings to a close an embarrassing episode for the German insurance giant, which has agreed to sell the bulk of Allianz Global Investors US as part of a settlement with the Securities and Exchange Commission.