Pimco says Bill Gross leaked bonus data, showed bad faith
- AT&T (T) to Acquire Time Warner (TWX) for $107.50/Share
- Rockwell Collins (COL) in Advanced Talks to Acquire B/E Aerospace (BEAV) - WSJ
- Top 10 News for 10/17 - 10/21: Merger Rumors Abound; CEOs Depart; Tesla Kicks Autopilot Up A Notch
- Wall Street ends little changed; Microsoft hits record
- AT&T (T) in Advanced Talks to Acquire Time Warner (TWX) - DJ
The offices of Pacific Investment Management Co (PIMCO) are shown in Newport Beach, California August 4, 2015. REUTERS/Mike Blake
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
By Jonathan Stempel
(Reuters) - Pacific Investment Management Co accused former star bond fund manager Bill Gross of leaking confidential bonus data and exercising "bad faith" in pursuing a $200 million lawsuit over his sudden departure from the firm in September 2014.
In a court filing dated Tuesday, Pimco said Gross admitted to having revealed 2013 compensation data to a Bloomberg News columnist after leaving Pimco, as part of his "sad obsession" with attacking the firm he co-founded and his former colleagues.
Pimco said Gross should be ordered to turn over materials it is entitled to see and be sanctioned for dragging his heels.
It cited, as an example, Gross' alleged failure to turn over emails about his exit from Pimco with the chief executive of his current employer, Janus Capital Group Inc (NYSE: JNS), which Pimco said it uncovered through a subpoena to Janus itself.
Pimco, a unit of German insurer Allianz SE
In his lawsuit filed last October, Gross claimed that Newport Beach, California-based Pimco forced him to resign so it could distribute his bonus to others.
Patricia Glaser, Gross' lawyer, in a statement on Wednesday said Pimco's "off-topic insults and baseless accusations" an were an attempt to deflect blame from its own misconduct.
"The only party trying to play 'hide the ball' is Pimco," she said.
Both sides are expected to appear in the California Superior Court in Santa Ana on Sept. 16.
Pimco said Gross' disclosures to the columnist at Bloomberg, which competes with Reuters News, included data for one-time Chief Executive Mohamed El-Erian, his successor Douglas Hodge and Daniel Ivascyn, who succeeded Gross as chief investment officer.
It also said that Gross admitted to giving compensation details to eight or nine managing directors prior to leaving Pimco.
That revelation included a note to recipients, "let's get our fair share in December," according to a person familiar with the matter who was not authorized to discuss the note.
Gross denied that Pimco had a right to take any adverse action over the disclosures, according to Tuesday's filing.
Pimco's lawyer, David Boies, said in a statement that "evidence of misconduct" and the unresolved disputes may leave the firm with "no choice but to bring claims against Mr. Gross for his improper actions."
Gross is worth $2.4 billion according to Forbes magazine, and has pledged to donate proceeds from his lawsuit to charity.
At Pimco, he built the flagship Pimco Total Return fund
The case is Gross v. Pacific Investment Management Co et al, California Superior Court, Orange County, No. 2015-00813636.
(Reporting by Jonathan Stempel and Jennifer Ablan in New York; Editing by David Gregorio and Leslie Adler)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Door to Lebanese presidency 'wide open', will vote for Aoun: Hezbollah
- AT&T-Time Warner may signal start of new media industry consolidation
- Italy tells EU not to reject its budget; criticizes Hungary
Create E-mail Alert Related CategoriesReuters
Related EntitiesWilliam H. Gross, Pacific Investment Management Company, LLC (PIMCO), Janus Capital, Mohamed El-Erian
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!