Bill Gross is suing PIMCO and parent company Allianz for US$200 million for constructive termination, breach of contract, and breach of covenant of good faith and fair dealing.
In a complaint filed with the California Superior Court, Gross claims “a cabal” of managing directors plotted to drive him out of PIMCO “in order to take, without compensation, Gross’s percentage ownership in the profitability of PIMCO.”
Read: Bill Gross leaving PIMCO
Under PIMCO’s profit-sharing plan, Gross claims he was entitled to receive 20% of the entire profit sharing bonus pool each year.
“By forcing him out of PIMCO, the younger executives would split Mr. Gross’s share of the bonus pool amongst themselves,” the claim alleges.
Gross, known as the “bond king,” founded PIMCO more than 40 years ago. He left the firm in September 2014 and is now at Janus Capital Group.
Also read: