Bill Gross settles Pimco feud for $81m

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Bond luminary Bill Gross has settled a dispute with former firm Pimco for an estimated $81m (£65m).

Gross, who made a dramatic exit in 2014 from the firm he co-founded, sued Pimco for “hundreds of millions of dollars” after he departed, claiming he was pushed out of the business unfairly.

His claim, filed in October 2015, described a plot by “a cabal of Pimco manging directors” to take Gross’ percentage stake in the business.

Gross’ claims over wrongful termination, breach of written contract, and breach of covenant of good faith and fair dealing, have now come to a close, and an “amicable” settlement reached.

In a joint statement with Pimco, Gross says: “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.”

In a statement, Pimco said that Gross, who now works for Janus Capital, had made “enormous contribution” to Pimco’s success.

It adds: “Pimco is also taking steps to ensure that the legacy and contributions of its founders, as both corporate and charitable citizens, are honoured and preserved”

The proceeds from the suit will be donated to charity.

Pimco’s group chief investment officer Dan Ivascyn says: “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.”