Gross Settles PIMCO Suit For $81 Million

Gross Settles PIMCO Suit For $81 Million

Star bond fund manager sued after being forced to resign; proceeds going to charity.

Reviewed by: Jennifer Ablan
Edited by: Jennifer Ablan

New York (Reuters) – Star bond fund manager Bill Gross has reached a roughly $81 million settlement of his lawsuit accusing his former employer Pacific Investment Management Co. of forcing him to resign so that his bonus could be divided among others.

Terms of the accord were not disclosed by Gross or PIMCO, but were confirmed by two people familiar with the matter who asked not to be named because of confidentiality concerns.

Proceeds are going to charity, Gross and PIMCO said in a joint statement.

Had Sought $200 Million

The settlement quietly ends what had been an acrimonious battle played out through the press, and then in Gross' $200 million lawsuit filed in October 2015 against PIMCO, a unit of German insurer Allianz.

Gross had departed PIMCO, his home for more than four decades, in September 2014, following negative news reports about his leadership and weak returns at its flagship Pimco Total Return fund, which he managed.

PIMCO had countered that Gross' "egregious misconduct" and increasingly erratic behavior would have given it "good cause" to terminate his employment had he not resigned.

Gross now runs the Janus Global Unconstrained Bond fund for Janus Capital Group.

He had sued PIMCO in a California state court. A request that the lawsuit be dismissed was filed on Monday.

Jennifer Ablan is a staff writer for Reuters.