Gross’s reputation and Pimco’s growth soared after the 2008 financial crisis, when his Total Return Fund posted gains as markets crashed. Assets at the fund soared to almost $300 billion by the first quarter of 2013, before investors spooked by the prospect of rising interest rates began pulling money.

Rising Tensions

Within Pimco, tensions mounted as younger managers resented Gross’s authoritarian management style. Mohamed El-Erian, Pimco’s chief executive officer, resigned in early 2014, prompting more infighting and preceding the push that ended with Gross leaving a handwritten resignation letter minutes before U.S. markets opened on Sept. 26, 2014.

“Driven by a lust for power, greed, and a desire to improve their own financial position and reputation at the expense of investors and decency, a cabal of Pimco managing directors plotted to drive founder Bill Gross out of Pimco in order to take, without compensation, Gross’s percentage ownership in the profitability of Pimco,” according to his complaint. It alleged that Pimco executives’ “improper, dishonest, and unethical behavior must now be exposed.”

The trial was scheduled to begin in September.

Pimco’s assets began to rebound last year from a low of $1.4 trillion. The firm hired Manny Roman in July as CEO, replacing Doug Hodge, whom Gross had helped name to succeed El-Erian. In February, Ivascyn’s Pimco Income Fund surpassed Pimco Total Return as the firm’s largest mutual fund.

‘Capable Hands’

Gross will partially match the $81 million settlement to make a total charitable contribution of $100 million, according to a person with knowledge of the matter, who asked not to be identified because the financial terms weren’t disclosed. The proceeds are going to the billionaire’s family philanthropy, the William and Sue Gross Family Foundation, the person said.

“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.”

Others who will be recognized with Gross as Pimco founders and leaders include Thompson, James Muzzy, William Podlich, Walter Gerken and Chris Dialynas, according to the statement.