The New Jersey attorney general's office is expected to file charges against Allianz Dresdner Asset Management, parent company of the Pimco Funds, on Tuesday for allowing market-timing business, the Associated Press reports.
The suit will claim the fund company allowed traders of up to $100 million at a clip, according to N.J. officials. In all, the AGs office claims the fund company allowed more than 200 market timed traders over a year and a half, totaling more than $4 billion.
The suit alleges the Allianz, and three affiliated fund companies, PEA Capital, Pacific Investment Management and Pimco Advisors Distributors, had market timing arrangements with hedge fund Canary Capital Partners. The arrangements were made so the fund groups could collect the fees and other income. The suit will seek restitution for shareholders, as well as the return of the ill-gotten gains and civil penalties, the AP reports.