PIMCO, Gross Settle Lawsuit
- Author: Zachary Reyes Mar 28, 2017,
Mar 28, 2017, 14:02
Gross filed for a request for dismissal of the suit, and all of its proceeds will go to charity - to the Sue and Bill Gross foundation.
The joint statement reflected Pimco's recognition of Gross' role in building the firm over four decades into a mutual fund powerhouse, even if his last months proved uncomfortable. Gross will partially match the settlement to bring the total charitable contribution to $100 million, the person said.
Gross, who was sacked by PIMCO in 2014, reportedly agreed to dismiss the lawsuit in exchange for $81 million and a few other institutional concessions.
The firm has shrunk since then and manages $1.5 trillion today.
"Pimco has always been family to me, and, like any family, sometimes there are disagreements", Gross said in the statement, which added that he is glad "to know that Pimco is in capable hands".
The suit also targeted Mohamed El-Erian, who was once in line to succeed Gross, and at the man who succeeded Gross as Pimco's group chief investment officer.
The first sentence of the lawsuit said Gross was pushed out of the company by a "cabal" of Pimco managing directors who were "driven by a lust for power, greed, and a desire to improve their own financial position".
The acrimonious divorce between Bill Gross and Pimco has ended amicably - and expensively.
For his part, Gross said: "I've always been amazed by my success, and grateful for the opportunity to make a difference in the world. He built this business from the ground up and we have great respect and admiration for his talents", Ivascyn said. Earlier this month, Gross warned investors not to be "allured by the Trump mirage of 3-4% growth and the magical benefits of tax cuts and deregulation".