Bill Gross said to sue Pimco for at least $200 million

Gross left Pimco previous year to join Janus Capital Group (JNS) in a haze of bitter accusations.

PIMCO is a fund behemoth with a whopping $1.52 trillion in assets under management as of June 30 2015. As a founder and senior executive, as well as a world-renowned investor, Mr. Gross received substantial income as PIMCO grew and established itself as one of the leading fixed income security investment firms in the world.

For Gross, that amount totaled about $16 million in the first two quarters of 2014, with $80 million more expected later in the year, according to the suit.

A complaint filed by Gross’ lawyers alleges that “a cabal” of managing directors at PIMCO pushed him out as a result of “a lust for power, greed, and a desire to improve their own financial position”, according to the report. From this experience, El- Erian became convinced of the attractiveness of such high-risk investments, especially since he had not yet been exposed to their downside during the “Great Recession” of 2007 that was soon to follow.

He is now chief economic adviser at German insurer Allianz, Pimco’s parent company. Gross, through a spokesman, declined to comment.

Specifically, it argues that top executives at the firm wanted a bigger share of the company’s massive bonus pool, of which Gross took home 20%, worth $300 million in 2013.

“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 suit states.

Mr Gross later said there “was no reasonable way” he could have stayed at Pimco. “I am very proud of my record there for more than 40 years”, he said shortly after he left.

The unrest rocked Pimco and dinged the firm’s stature. But slowly and with great hesitation, I came to understand that it was time for me to leave.

Pimco did not respond to a request from CNNMoney for comment on the lawsuit. “Our focus remains on our clients and their investment portfolios”.