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| 'Bond King' Bill Gross sues Pimco for $200m | 'Bond King' Bill Gross sues Pimco for $200m |
| (about 1 hour later) | |
| Bill Gross, Wall Street's "Bond King", is suing Pimco for $200m (£130m) after resigning as head of the bond fund last year. | Bill Gross, Wall Street's "Bond King", is suing Pimco for $200m (£130m) after resigning as head of the bond fund last year. |
| He claimed colleagues forced him out so they could get his share of the $1.3bn bonus pool. | He claimed colleagues forced him out so they could get his share of the $1.3bn bonus pool. |
| Mr Gross said the Pimco bosses were "driven by a lust for power, greed, and a desire to improve their own financial position". | Mr Gross said the Pimco bosses were "driven by a lust for power, greed, and a desire to improve their own financial position". |
| Allianz, which owns Pimco, said the legal action had no merit. | |
| "We will not comment on the allegations contained in the complaint other than that the lawsuit has no merit," an Allianz spokeswoman said. | |
| Mr Gross, 71, said he had been "on track" to receive a bonus of more than $250m last year out of Pimco's $1.3bn bonus pool. | Mr Gross, 71, said he had been "on track" to receive a bonus of more than $250m last year out of Pimco's $1.3bn bonus pool. |
| He claimed that younger Pimco executives plotted to force him out and get his 20% stake in the bonus pool. | He claimed that younger Pimco executives plotted to force him out and get his 20% stake in the bonus pool. |
| The lawsuit takes to new levels the animosity between Mr Gross and Pimco, which he co-founded and expanded over four decades into the largest US bond fund. | The lawsuit takes to new levels the animosity between Mr Gross and Pimco, which he co-founded and expanded over four decades into the largest US bond fund. |
| Management style | Management style |
| Pimco's flagship Total Return Fund performed poorly last year and many investors withdrew funds, with assets falling below $100bn after peaking at close to $300bn in April 2013. | Pimco's flagship Total Return Fund performed poorly last year and many investors withdrew funds, with assets falling below $100bn after peaking at close to $300bn in April 2013. |
| Mr Gross's management style was also questioned after his deputy, Mohamed El-Erian, resigned in early 2014. | Mr Gross's management style was also questioned after his deputy, Mohamed El-Erian, resigned in early 2014. |
| Mr Gross now runs a bond fund for Janus Capital. | Mr Gross now runs a bond fund for Janus Capital. |
| Pimco spokesman Mike Reid declined to comment, while a spokesman for Mr Gross also declined to comment. | Pimco spokesman Mike Reid declined to comment, while a spokesman for Mr Gross also declined to comment. |
| The lawsuit accuses Pimco of constructive termination, breach of contract, and exercising bad faith. | The lawsuit accuses Pimco of constructive termination, breach of contract, and exercising bad faith. |
| The action was filed in the California Superior Court in Orange County. | |
| Patty Glaser, Mr Gross's lawyer, said any damages won would be donated to charity. | Patty Glaser, Mr Gross's lawyer, said any damages won would be donated to charity. |