Gross settles for $81M in Pimco parley

The acrimonious divorce between Bill Gross and Pimco has ended amicably — and expensively.

The 72-year-old bond king will reportedly receive $81 million as he settles a breach-of-contract suit he brought against Pacific Investment Management Co. — the world’s biggest mutual fund — in October 2015.

Although a tidy sum, that still falls short of the $200 million Gross had claimed he was owed in California state court following his spectacular September 2014 ouster, which came after he famously locked horns with his heir apparent, Mohamed El-Erian.

“Pimco has always been family to me, and, like any family, sometimes there are disagreements.” Gross said in a statement released jointly with Pimco, which he founded in 1971.

Gross’ comments were quite the departure from his 2015 description of Pimco’s management as a “cabal” that was “driven by a lust for power, greed, and a desire to improve their own financial position” to orchestrate Gross’ “wrongful and illegal ouster from the company.”

Pimco was equally chilly in its November 2015 motion to dismiss the case: “Pimco has moved forward since Mr. Gross’s resignation. It is time for him to do the same...” Tensions have abated since then. “Bill Gross has always been largerthan-life,” said Dan Ivascyn, Pimco’s chief investment officer.

On Monday, Gross insisted his lawsuit “had never been about money” and that any proceeds would be donated to charity. Since leaving Pimco, Gross has worked with Janus Capital Group.

“I’m glad that we have had the opportunity to work through those [disagreements], and see the Pimco founders receiving the recognition they deserve,” Gross said.