Bill Gross is suing his former employer for “hundreds of millions of dollars”, claiming he was wrongfully pushed out.
The complaint, filed in the US, alleged “a cabal of Pimco managing directors” plotted to drive Mr Gross out so they could take his percentage ownership in the profitability of Pimco.
The filing claimed the managing directors were “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.”
Mr Gross claimed that he became the target of a power struggle within Pimco, which led to his “wrongful and illegal ouster”.
The bond manager was expecting a bonus of around $250m for 2014, most of which was due in the second half of the year. He left the group before the third quarter ended and, Mr Gross alleged, Pimco did not pay him the correct amount.
Pimco said the allegations were without merit.
Mr Gross left Pimco, the firm he cofounded in 1971, to join Janus Capital in September last year.
Were he to win the lawsuit, Mr Gross said he would give all proceeds to a range of charities including the Pimco Foundation.
The manager is now running the Janus Global Unconstrained Bond fund.
