A Gross injustice

Bond King is suing Pimco for $200M

The Bond King is back for more.

Bill Gross, cofounder and former chief investment officer of Pimco, is suing the Newport Beach, Calif.based bond giant over his ouster, claiming a “cabal” of junior managers plotted against him to grab more of the bonus pool.

Gross wants Pimco and German parent Allianz to pony up more than $200 million he claims he was owed before he was forced out last September, according to the suit filed Thursday in California court.

“As long as Mr. Gross remained at the company he founded, these younger executives were unable to transform Pimco, increasing client risk and their own compensation,” the 37page complaint alleges.

“As a consequence, Mr. Gross became the target of a power struggle within Pimco, a struggle that eventually led to his wrongful and illegal ouster.”

Gross, 71, founded Pimco in 1971 and built it to become the biggest bond fund in the world, with $1.52 trillion under management as of June 30. Pimco has been so successful that $10,000 invested in its Total Return Fund in 1987 would have been worth almost $81,000 at the end of August.

After leaving Pimco, Gross joined Janus Capital, where he manages about $1.4 billion.

Gross, whose net worth is pegged at $2.3 billion by Forbes, took home $300 million of Pimco’s $1.3 billion profitsharing bonus pool in 2013 and was on track to collect $250 million for last year, according to the complaint.

“This lawsuit has no merit, and our legal team will be responding in court in due course,” said Pimco spokesman Michael Reid. “Our focus remains on our clients and their investment portfolios.”