Blue Cross Blue Shield Association's national employee benefit committee filed a lawsuit against an investment firm after losing $2 billion from its benefit plan trust, according to Pensions & Investments.
The lawsuit, filed against Allianz Global Investors and investment consultant Aon, charged both firms with breaches of fiduciary responsibilities and breach of contract. It claims AllianzGI took "reckless actions" in managing BCBSA's funds during heavy losses in February and March, according to Sept. 16 court filings in the U.S. District Court in New York. BCBSA also accused the firms of having inadequate risk management.
John Wallace, an AllianzGI spokesperson, told Pensions & Investments: "While the losses … during the market downturn in late February and March were disappointing, AllianzGI believes the allegations made by Blue Cross Blue Shield are legally and factually flawed. We will defend ourselves vigorously against these claims."
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