Pimco and Bill Gross have ended their long-running legal battle, with the Newport Beach-based asset manager paying its founder and former star manager $81 million.
Gross left the firm in acrimonious circumstances in September 2014 and in October 2015 sued Pimco for $200 million over what he claimed were unpaid bonuses.
He famously left a handwritten note announcing his departure and joined rival firm Janus Capital Management.
Gross claimed he was pushed out of the company by fellow fund managers who wanted a larger share of the bonus pool. Pimco disputed this and after much legal wrangling the case was set to be heard in September.
The two sides have now reached a private agreement outside of court, which they described in a joint statement as 'amicable'.
Citywire understands that Pimco has agreed to pay Gross a settlement of $81 million, which will go to his charitable foundation, the Bill and Sue Gross Family Foundation.
Pimco has also moved to recognize the contribution of Gross and other founders to its success.
The company is dedicating a new 'Founders Room' in their honor at its Newport Beach headquarters. Additionally the Pimco Foundation, which oversees charitable donations and projects, named Gross a director emeritus and is establishing an annual Bill Gross Award.
Gross said: ‘Pimco has always been family to me, and, like any family, sometimes there are disagreements. I’m glad that we have had the opportunity to work through those, and see the Pimco founders receiving the recognition they deserve. I am honored to be included in their ranks and to know that Pimco is in capable hands.’
His successor as CIO of the firm Dan Ivascyn (pictured above), said: ‘Bill Gross has always been larger-than-life. He has a well-deserved stellar reputation as an investor and a philanthropist. Bill has had an enormous influence on Pimco and the careers of many who have passed through its halls. He built this business from the ground up and we have great respect and admiration for his talents.’