Gross Seeks Vindication as he Sues Firm he Helped Build

Now, he has filed a complaint against his former company.

He liked to boast that the key investment strength he brought to bond investing was combining the type of intuitive probability analysis common among so-called mechanics of blackjack, and that he had a psychological student’s understanding of what drives the human emotions to engage in herd behavior, overreaction and despair.

Famed bond investor Bill Gross sued his former employer Pacific Investment Management Co and its parent Allianz SE for $200 million, saying he was driven out of the bond fund giant he helped found by a greedy “cabal” of executives who wanted his huge bonus for themselves.

“Their improper, dishonest, and unethical behavior must now be exposed”.

The suit confirms numerous allegations that had dripped into public view before and after Gross’ departure and adds new details about clashes between top Pimco figures.

El-Erian received his first substantive exposure to a host of high-risk derivative asset ~ classes while at Harvard. Apparently this caused El-Erian to be so apprehensive about having “to bear sole responsibility (and blame) for the high-risk, high-fee investments he had expanded PIMCO into” that he just panicked and quit. Gross said that this products bravado made him fear damage to the company in the event of a Lehman Brothers-type catastrophe.

Tell us how you really feel, Bill.

Incidentally, do not get stuck in their own pockets, but the sum to charity donations – also the PIMCO Foundation. Two days later, the FT broke the story and blamed Gross for El-Erian’ resignation. El-Erian didn’t respond to an email seeking comment. Gross claims Andrew Balls, a Pimco senior executive, called reporters on behalf of El-Erian via a “little-used cell phone”. Over the years, he and Pimco would become the biggest names in fixed-income mutual funds – his face a constant presence on CNBC and other business news channels.

Pimco has dismissed its former star fund manager Bill Gross’ $200 million legal case against the firm. (Pimco) – joined Denver-based Janus Capital Group Inc.in September 2014. “The way PIMCO discloses fund fees is something Morningstar analysts have written about and raised publicly many times in the past”. Ivascyn along with several co-conspirators threatened PIMCO that if Gross was not dismissed form the company, they would resign. They would subsequently use this statement to mislead others at PIMCO regarding the true extent of Balls’s misconduct.

The lawsuit isn’t completely unexpected, of course, given the past year or so of tension between Gross and PIMCO that has largely played out in the media. “Plus, without his [taking] 20% of the bonus pool, there’s a bigger slice of the pie for others”.

Then the palace managing directors laid down an ultimatum.

The Bond King is back for more. Gross’s relationship with his colleagues also deteriorated.

Rumors were afloat that Gross’ exit from PIMCO was a result of mounting tensions in PIMCO, which were weighing down Gross. The complaint highlighted, “This plan stripped Mr. Gross of power position and compensation”. Nevertheless, Mr. Gross believed it would be better for PIMCO and its investors than the alternative of a protracted fight among PIMCO’s leadership.

Gross, a billionaire, had been “on track” to receive a bonus topping $250 million from Pimco in 2014, with most of it paid late in the year, according to the complaint.

The lawsuit was filed on behalf of Bill Gross by lawyers from Glaser, Weil, Fink, Howard, Avchen & Shapiro LLP.