LBN’s Emily Collins reports that William H. Gross, known as the bond king, has sued Pacific Investment Management Co. (Pimco) and its parent company, Allianz SE, for at least $200 million. Gross is a co-founder of Pimco and was the firm’s chief investment officer. His lawsuit, filed in California Superior Court in Orange County, alleges that the company’s managing directors plotted to drive Gross out of the company.
Gross is suing for breach of covenant of good faith and fair dealing. The lawsuit specifically mentions Mohamed El-Erian, the man who was originally supposed to succeed Mr. Gross, as well as Daniel Ivascyn, Pimco's Group Chief Investment Officer. The lawsuit talks describes the troubles that arose between Gross and El Erian, then the Chief Executive Officer of the company.
Gross has promised to donate any money received in the lawsuit to charity, according to his lawyer, Patricia L. Glaser. Gross is worth $2 billion, according to the Bloomberg Billionaires Index, so money is not his first concern.
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