Pimco says Bill Gross leaked bonus data, showed bad faith

Wed Sep 14, 2016 9:41pm EDT
 
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By Jonathan Stempel

(Reuters) - Pacific Investment Management Co accused former star bond fund manager Bill Gross of leaking confidential bonus data and exercising "bad faith" in pursuing a $200 million lawsuit over his sudden departure from the firm in September 2014.

In a court filing dated Tuesday, Pimco said Gross admitted to having revealed 2013 compensation data to a Bloomberg News columnist after leaving Pimco, as part of his "sad obsession" with attacking the firm he co-founded and his former colleagues.

Pimco said Gross should be ordered to turn over materials it is entitled to see and be sanctioned for dragging his heels.

It cited, as an example, Gross' alleged failure to turn over emails about his exit from Pimco with the chief executive of his current employer, Janus Capital Group Inc JNS.N, which Pimco said it uncovered through a subpoena to Janus itself.

Pimco, a unit of German insurer Allianz SE (ALVG.DE: Quote), said Gross' "egregious misconduct" supports its argument that it would have had "good cause" for terminating his employment.

In his lawsuit filed last October, Gross claimed that Newport Beach, California-based Pimco forced him to resign so it could distribute his bonus to others.

Patricia Glaser, Gross' lawyer, in a statement on Wednesday said Pimco's "off-topic insults and baseless accusations" an were an attempt to deflect blame from its own misconduct.

"The only party trying to play 'hide the ball' is Pimco," she said.   Continued...

 
The offices of Pacific Investment Management Co (PIMCO) are shown in Newport Beach, California August 4, 2015. REUTERS/Mike Blake