Raytheon Technologies’ corporate pension fund is the latest of a bevy of retirement plans to sue Allianz over alleged mismanagement of certain structured product investments.
Raytheon s complaint, filed on Friday, alleges that it lost about 75 percent of its $375 million investment with Allianz losses that “far exceed” what it would have lost if Allianz “prudently” managed the investment strategy.
Raytheon joins several other pension funds that have already sued Allianz over the alleged mismanagement, including the Blue Cross Blue Shield Association National Employee Benefits Committee, the Teamster Members Retirement Plan, and Lehigh University, among several others.
“As we set out at the time, the Structured Alpha portfolio sustained losses during the severe market rout in late February and March,” an Allianz spokesperson said via email Tuesday. “While the losses were disappointing, the allegations made by Raytheon Technologies Corporation Pension A
Allianz Targeted by Raytheon in Fiduciary Breach Lawsuit
The complaint suggests Allianz abandoned a hedging strategy that was the supposed cornerstone of an investment fund utilized by the Raytheon pension plan, resulting in unexpected losses.
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Plaintiffs have filed a new Employee Retirement Income Security Act (ERISA) complaint in the U.S. District Court for the Southern District of New York against Allianz Global Investors.
Distinguishing the case from many of the numerous ERISA suits filed in the past several years, the plaintiffs in the suit are not retirement plan participants but instead are members of the Raytheon Technologies Corporation Pension Administration and Investment Committee. In their complaint, the plaintiffs suggest Allianz mismanaged a fund called the AllianzGI Structured Alpha U.S. Equity 500 LLC, allegedly leading to hundreds of millions of dollars in losses on behalf of the Raytheon pension plan.