Insurance giant Allianz disclosed in a press release Sunday that it could face enforcement resulting from an expanded probe into its Structured Alpha Funds business.
The Department of Justice (DOJ) has joined the Securities and Exchange Commission (SEC) in investigating the firm after multiple investors launched lawsuits last year over Structured Alpha-related losses incurred during market uncertainty caused by the pandemic. Allianz said it is cooperating with both regulators and has opened its own investigation into the matter.
“In 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,” the firm stated.
Allianz added it cannot estimate how the investigations might proceed or what a financial penalty might look like at this time.
The SEC launched its probe in 2020. Allianz has previously stated it would defend itself against any litigation related to the investor losses, which lawsuits have pegged at several billion dollars.