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Bill Gross to sue PIMCO over dismissal

Bill Gross to sue PIMCO over dismissal

Bill Gross is set to sue fund management group PIMCO for over $200 million over his dismissal, according to reports.

The New York Times has reported Gross filed the lawsuit on Thursday and is seeking to repair damage done to his reputation after his exit from the California-based group last fall.

Gross, who has since joined Janus Capital, is seeking 'in no event less than $200 million' from PIMCO for breach of covenant of good faith and fair dealing, among other causes of action, according to the paper.

Gross was a founder and chief investment officer of PIMCO up until September 2014, when he left to join Janus Capital Group.

At the time he said his departure was due to ‘fundamental differences’ between the firm’s management team. The bond veteran currently manages the Janus Global Unconstrained Bond.

 A spokeswoman from PIMCO said,'This lawsuit has no merit and our legal team will be responding in court in due course. Our focus remains on our clients and their investment portfolio.'

According to filings, within the first sentence of the complaint Gross alleges he was pushed out by a 'cabal' of PIMCO managing directors who were 'driven by a lust for power, greed, and a desire to improve their own financial position.'

'Their improper, dishonest, and unethical behavior must now be exposed,' it said.  

Gross also alleged he was forced out so his colleagues would receive a greater share of the firm’s $300 million 2013 bonus pool, to which he was entitled to 20%

Within the complaint, Gross also took a jab at Pimco's current chief investment manager Dan Ivascyn. He said Ivascyn's investment offerings carried 'hefty, hedge-fund like fees' while also 'skimming off as much as 2% of all assets under management each year, regardless of performance'. To view the filings, click here.

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