SANTA ANA, Calif., Oct. 8 (UPI) -- "Bond king" William Gross on Thursday filed a $200 million lawsuit against Pimco, the asset management company he helped build over his ouster.
Gross accuses a "cabal" of managers of forcing him out of the company.
They were "driven by a lust for power, greed, and a desire to improve their own financial position...Their improper, dishonest, and unethical behavior must now be exposed," the lawsuit alleges.
The 19-page complaint alleges Gross was forced from Pimco by executives eager to split his share of the firm's "bonus pool." Gross' share of the pool in the first half of 2014 was $16 million, with $80 million more expected.
There was also a personality and ego clash with Mohamed al-Erian, former Pimco CEO, who left the company in 2014. The lawsuit suggests Gross and el-Erian differed on whether the firm should move from responsibility for billions of dollars in retirement savings, its primary focus, to riskier investments.
"The turmoil surrounding el-Erian's departure provided fertile cover for individuals seeking to oust Mr. Gross from Pimco for their own personal financial benefit and egos," the lawsuit says.
Reports after Gross left Pimco suggested erratic behavior and disagreements with executives on his part led to his departure. Gross was noted for long letters to investors which included comments on pets, philosophy and his personal life.
The suit, filed in Orange County, Calif., requests a jury trial and claims breach of contract. Gross' lawyer, Patricia Glaser, said any damages awarded to Gross will be given to charity, an indication Gross, a billionaire, is more eager to correct the public perception of his reason for leaving the firm than for financial gain.
