Bill Gross, Pimco settle lawsuit over his exit for $81 million: sources

Mon Mar 27, 2017 3:37pm EDT
 
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By Jonathan Stempel and Jennifer Ablan

NEW YORK (Reuters) - Bill Gross has reached a roughly $81 million settlement of his lawsuit against Pacific Investment Management Co, ending a bitter 2-1/2-year drama over the well-known bond investor's abrupt departure from one of the world's biggest asset managers.

Terms of the accord were not disclosed, but were confirmed by two people familiar with the matter, who asked not to be named because the terms were confidential.

Gross and Pimco said in a joint statement the settlement was "amicable," and that Pimco will donate the proceeds to charity.

"Pimco has always been family to me, and, like any family, sometimes there are disagreements," Gross, a Pimco co-founder, said in the statement.

The accord quietly ends an acrimonious battle over the 72-year-old billionaire's September 2014 exit from Pimco, where he had been chief investment officer. That battle played out first in the media, and then in Gross' $200 million lawsuit.

Gross, who now works for Denver-based Janus Capital Group Inc (JNS.N: Quote), left Pimco following negative reports about his leadership and weak returns at Pimco Total Return PTTRX.O, once the world's largest bond mutual fund with $293 billion of assets at its peak.

In his October 2015 lawsuit, Gross accused a greedy "cabal" of Pimco executives, including group chief investment officer Dan Ivascyn, of plotting to oust him so they could divide his 20 percent share in Pimco's bonus pool among themselves.

The pool totaled $1.3 billion in 2013, and Gross' pay that year topped $300 million, according to the complaint filed in California Superior Court.   Continued...

 
Bill Gross speaks at the Morningstar Investment Conference in Chicago, Illinois, June 19, 2014. REUTERS/Jim Young