Bill Gross and Pacific Investment Management Co. have settled a breach of contract suit the money manager filed in 2015, a year after he was ousted from the firm he co-founded.
The two sides announced the accord in a joint statement Monday, calling the agreement “amicable.”
Pimco agreed to pay $81 million to settle Gross’s claim, which will be donated to the billionaire’s family foundation, according to a person with knowledge of the matter, who asked not to be named because the case was settled privately. Gross will partially match the settlement to bring the total charitable contribution to $100 million, the person said.
Gross, 72, claimed he was ousted from Pimco by a “cabal” of executives who wanted a
larger share of his bonus, which was $290 million in 2013, and also wanted to offer more high-fee products to investors rather than Pimco’s traditional bond funds. Gross now runs the Janus Global Unconstrained Bond Fund.
The trial was scheduled to begin in September.
The case is Gross v. Pacific Investment Management Co., 30-2015-00813636, California Superior Court, Orange County (Santa Ana).
This article was provided by Bloomberg News.