Gross, Pimco settle suit over his ouster
NEWPORT BEACH, Calif. — A bitter legal war between bond investor Bill Gross and Pimco, the company he built into one of the biggest asset managers in the world, is over.
A lawyer representing Gross filed a request Monday in California state court to dismiss the investor’s lawsuit over his 2014 ouster. The terms of the settlement were not disclosed, although both sides noted in a joint statement that “any proceeds from the suit will be donated to charity.”
People briefed on the matter said that Pimco would pay more than $80 million to the William and Sue Gross Family Foundation.
Gross, who co-founded the firm in 1971, will add from his own fortunes to make the contribution total more than $100 million, some of these people said.
Pimco did say that it would dedicate a room in his headquarters in Newport Beach to its founders and that Gross would be named a “director emeritus.”
In the statement, Gross said: “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.”
Gross sued the firm in October 2015, accusing it of breach of contract and breach of covenant of good faith and fair dealing.
The litigation had been a frustrating distraction for Pimco as it sought to recover from the damage done by Gross’ departure. Since his exit in September 2014, Pimco’s assets have slid to $1.47 trillion, from more than $2 trillion at the peak.
The settlement comes as Gross seeks to refurbish his image at a competitor, Janus Capital Group. Details that emerged on his split with Pimco portrayed him as erratic and authoritarian.