Bill Gross sued his former employer, Pacific Investment Management Co., and its parent company Thursday for breach of contract, alleging that managing directors plotted to drive the famed bond investor out of the firm because of “power, greed, and a desire to improve their own financial position,” according to court documents.
Gross, a co-founder of Newport Beach, Calif.-based Pimco and the firm’s former chief investment officer, abruptly left the company in September 2014 after increasingly erratic behavior and disagreements with the firm’s other executives, The Wall Street Journal reported at the time.
A spokesman for Pimco wasn’t immediately available for comment. A spokeswoman for Denver-based Janus Capital Group Inc., where Gross now manages a bond fund, said this is a “personal matter related to Bill and involves activities prior to his involvement at Janus.”
Gross, a billionaire, is demanding a jury trial and damages no less than $200 million, according to the 19-page complaint, filed in the Superior Court of the State of California for the County of Orange. The suit also names Allianz Asset Management of America, a unit of Pimco’s German-based parent company, Allianz SE.
A spokesman for Gross didn’t immediately respond to a call for comment. An attorney for Gross said all proceeds from the lawsuit will go to charity, including the Pimco Foundation.
The lawsuit alleges that by forcing Gross out of Pimco, younger executives would be able to split his share of the firm’s well-known bonus pool. For Gross, that amount totaled about $16 million in the first two quarters of 2014, with $80 million more expected later in the year, according to the suit.
The suit details the trouble between Gross and former Pimco CEO Mohamed El-Erian, who left the company in early 2014 after clashes with Gross, according to court documents.
“The turmoil surrounding El-Erian’s departure provided fertile cover for individuals seeking to oust Mr. Gross from Pimco for their own personal financial benefit and egos,” the suit states.
