Date
29 May 2017
Bill Gross says Pimco executives who were after his quarter-billion-US-dollar bonus forced him out. Photo: Bloomberg
Bill Gross says Pimco executives who were after his quarter-billion-US-dollar bonus forced him out. Photo: Bloomberg

Bill Gross sues Pimco for US$200 mln for forcing him out

Billionaire bond investor Bill Gross sued his former employer, Pacific Investment Management Co., and its parent, Allianz SE, for US$200 million for forcing him out in September last year, Reuters reported.

Gross said a greedy “cabal” of executives drove him out of the bond fund giant he helped found because they wanted his huge bonus for themselves.

The lawsuit ratchets up the vitriol between Gross, 71, who now works at Janus Capital Group Inc., and Pimco, which he built over four decades into a US$2 trillion bond fund company.

In plotting to get rid of him, Pimco managing directors were “driven by a lust for power, greed, and a desire to improve their own financial position and reputation”, Gross said in a complaint filed Thursday in California Superior Court.

Gross had been “on track” to receive a bonus topping US$250 million in 2014, with most paid late in the year, the complaint said.

He accused Pimco of constructive termination, breach of contract, and bad faith.

“This lawsuit has no merit, and our legal team will be responding in court in due course,” Pimco spokesman Michael Reid said. Allianz also said the lawsuit has no merit.

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