Bill Gross is suing former employer Pimco for “hundreds of millions of dollars” on the grounds he was pushed out of the business.
The bond guru left Pimco in September last year, having co-founded the firm in 1971, and joined Janus Capital in a move that shocked the industry, according to Bloomberg, which obtained a draft of the complaint, said to have been filed today.
Gross claims Pimco owes him the “hundreds of millions” for wrongful termination, breach of written contract and breach of covenant of good faith and fair dealing.
“Driven by a lust for power, greed, and a desire to improve their own financial position and reputation at the expense of investors and decency, a cabal of Pimco managing directors plotted to drive founder Bill Gross out of Pimco in order to take, without compensation, Gross’s percentage ownership in the profitability of Pimco,” the complaint states. “Their improper, dishonest, and unethical behaviour must now be exposed.”
The lawsuit asserts Gross was forced out of the business because of his low-fee, low-risk approach to bond investments, which didn’t sit well with executives looking to expand into riskier assets and higher-fee products.