On August 1, 2021, Allianz disclosed that “[s]ubsequent to the litigation pending in U.S. courts in relation to the Structured Alpha Funds against Allianz Global Investors U.S. LLC [AGI U.S.] and other Allianz Group companies and the investigation launched by the U.S. Securities and Exchange Commission (‘SEC’) in 2020, the U.S. Department of Justice (‘DOJ’) has begun an investigation concerning the Structured Alpha Funds, and Allianz Global Investors U.S. LLC has received a voluntary request for documents and information from the DOJ.” Allianz further stated that “[i]n light of the DOJ investigation and based on information available to Allianz as of today, the Board of Management of Allianz SE has reassessed the matter and has come to the conclusion that there is a relevant risk that the matters relating to the Structured Alpha Funds could materially impact future financial results of Allianz Group.”
On this news, the Company’s American depositary receipt (“ADR”) price fell $2.00, or 8%, to close at $22.85 per ADR on August 2, 2021, damaging investors.
Then, on May 17, 2022, Allianz’s U.S. investing divisions pleaded guilty to securities fraud, admitting that it lacked internal controls and oversight for a series of private-investment funds and made false and misleading statements to investors. The Company agreed to pay $6 billion in penalties and restitution.
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