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| Version 1 | Version 2 |
|---|---|
| 'Bond King' Bill Gross sues Pimco for $200m | 'Bond King' Bill Gross sues Pimco for $200m |
| (about 4 hours 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". |
| Pimco said the legal action had no merit. | |
| "Our legal team will be responding in court in due course," a spokesperson said. | |
| Pimco's parent company, the German insurer Allianz, also said the lawsuit had no merit. | |
| 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. |
| In the complaint, Mr Gross said a difference in strategy resulted in a falling-out with Mr El-Erian, who is now chief economic adviser at Allianz. | |
| He said Mr El-Erian wanted to give investors an "extensive and varied menu" of investment choices, while Mr Gross favoured a "bonds and burgers" focus. | |
| Mr Gross now runs a much smaller bond fund for Janus Capital. | |
| The lawsuit - filed in the California Superior Court in Orange County - accused Pimco of constructive termination, breach of contract and exercising bad faith. | |
| 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. |
| John Brynjolfsson, a former Pimco managing director and colleague of Mr Gross, said: "I was saddened to hear Bill felt it necessary to revisit this already well-aired dirty laundry. I suspect all his confidants told him to move on." | |
| Mr Gross is worth an estimated $2.3bn. |