Bill Gross is suing PIMCO, the fund management giant he cofounded.
He is seeking “hundreds of millions of dollars”, according to the complaint.
A complaint filed by Gross’ lawyers alleges that “a cabal” of managing directors at PIMCO pushed him out as a result of “a lust for power, greed, and a desire to improve their own financial position.”
News of Gross’ suit was first reported by Nathaniel Popper at The New York Times.
PIMCO is a fund behemoth with a whopping $1.52trillion in assets under management as of June 30 2015.
The firm was at the center of one of the stories of 2014.
Then-CEO Mohamed El-Erian shocked the world with his surprise resignation in January 2014. That was quickly followed by a series of stories from The Wall Street Journal and Reuters about the unorthodox management style of cofounder and then-co-CIO Gross.
And after about nine months of drama, Gross rocked the finance industry with his own resignation announcement in September. Gross leftthe firm for Janus Capital, in a move that preempted his own firing.
In the complaint, Gross claimed that in 2014 he was on track to receive a bonus of approximately $250 million.
“Although bonuses were paid quarterly, they were weighted more heavily towards the end of the year with the majority of the bonus pool money being distributed in the third and fourth quarters. In the first two quarters of 2014 Mr. Gross received bonuses of approximately $16 million. He was also informed that he could expect $80 million as his third quarter bonus payment scheduled for September 30, 2014 with the remainder to be paid at the fourth quarter,” the complaint said.
Gross’ claimed that he was “forced out” on September 25, 2014, just five days before the end of the third quarter. Gross also claimed that PIMCO has refused to pay “any portion of his third quarter bonus.”
At the time of Gross’ departure, PIMCO chief executive Douglas Hodge said that Gross and the firm’s leadership had “fundamental differences.”
The statement read: “While we are grateful for everything Bill contributed to building our firm and delivering value to PIMCO’s clients, over the course of this year it became increasingly clear that the firm’s leadership and Bill have fundamental differences about how to take PIMCO forward.”
PIMCO declined to comment on Thursday when contacted by Business Insider.
Patty Glaser, lead attorney for Bill Gross, said that all proceeds from the lawsuit will go to charity, including the Pimco Foundation.
Here’s a copy of the complaint: