9th October 2015
‘Bond king’ Bill Gross is suing asset manager Pimco for $200 million after he was dismissed.
The New York Times has reported that star fund manager Gross (pictured), who helped found Pimco and ran its $270 billion total return fund, is seeking reparations for damage done to his reputation following his exit.
Gross left the California-based company in September 2014 and has since joined Janus Capital has filed a lawsuit in which he seeks ‘in no event less than $200 million’ from Pimco for breach of good faith and fair dealing, among other actions.
At the time of Gross’ departure from Pimco he blamed ‘fundamental differences’ between the firm’s management team.
In the court filings, seen by the New York Times, Gross claims he was pushed out of the company be a ‘cabal’ of Pimco managing directors who were ‘driven by a lust for power, greed, and a desire to improve their own financial position’.
It said: ‘Their improper, dishonest and unethical behaviour must now be exposed.’
Pimco has denied the claim, and in a statement it 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 portfolios.’
Gross now manages the Janus Global Unconstrained Bond fund.