Billionaire bond investor Bill Gross sued his former employer Pacific Investment Management Co and its parent Allianz SE for $200 million (130 million pounds), saying 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 <JNS.N>, and Pimco, which he built over four decades into a $2 trillion bond fund company. His ouster was announced on Sept. 26, 2014.
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 on Thursday in the California Superior Court in Orange County.
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.
Gross had been “on track” to receive a bonus topping $250 million in 2014, with most paid late in the year, according to the complaint. 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.
A Janus spokeswoman called the lawsuit “a personal matter related to Bill.”
“We will not comment on the allegations contained in the complaint other than that the lawsuit has no merit, ” an Allianz spokeswoman said.
Read the full story at REUTERS, by Jennifer Ablan and Jonathan Stempel
