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MTA & Allianz Structured Alpha Fund Litigation


The Firm served as Co-Counsel representing public pension and employee benefit funds operated by North America’s largest public transportation authority in Metropolitan Transportation Authority Defined Benefit Pension Plan Master Trust, et al. v. Allianz Global Investors U.S., LLC, et al., Case No. 1:20-cv-07842 (S.D.N.Y.). The complaint alleged negligence and breaches of contract and fiduciary duties in connection with losses sustained via an alternative investment fund (Structured Alpha 1000) trading in short and long index option positions. The complaint also alleged that the Defendants undertook unreasonable levels of risk that far exceeded agreements made between the parties and requisite duties of care – all in disregard of the deteriorating market conditions that arose from news of the COVID-19 pandemic in early 2020. In August 2020, the Defendants disclosed that the U.S. Securities & Exchange Commission issued a request for information regarding the collapse of the Structured Alpha family of hedge funds. The MTA benefit funds secured a settlement from Allianz. Immediately thereafter, the U.S. Department of Justice of the Southern District of New York announced related guilty pleas.