Gross: Punish PIMCO For 'Bad Faith' Tactics

Sep 9 2016 | 10:14pm ET

By Jonathan Stempel (Reuters) - Bond fund manager Bill Gross on Friday said Pacific Investment Management Co. and its lawyers should be punished for unfairly impeding him from pursuing his $200 million lawsuit against the asset management firm, which he co-founded.

In a court filing, Gross accused PIMCO of "willful and bad-faith obstruction" of his efforts to gather evidence to which he is entitled, including by scheduling depositions in London and Hong Kong, some 6,000 miles apart, on consecutive days in early November.

"Discovery is not, and should not be, a game to be manipulated in this manner," Gross said in a filing with the California Superior Court in Santa Ana.

"Substantial sanctions" against PIMCO and its lawyers are justified to cover his legal bills stemming from the alleged misconduct, and "to punish PIMCO's gamesmanship," he added.

PIMCO spokesman Michael Reid said: "Mr. Gross' version of events is inaccurate. This is a legal matter which our attorneys will deal with in court."

Both sides are expected to appear in court on Sept. 16 to discuss what evidence Gross is entitled to receive.

Gross, who now works for Denver-based Janus Capital Group, sued PIMCO last October to recoup the bonus he said he was owed following his 2014 ouster from the Newport Beach, California-based firm.

PIMCO, a unit of German insurer Allianz SE, has said it had good cause to oust Gross, citing his alleged abusive behavior toward colleagues and refusal to accept decisions by management.

A billionaire, Gross has pledged to donate any proceeds from the lawsuit to charity.

At PIMCO, Gross had built the company’s Total Return Fund into the world's largest bond fund, a title it no longer holds. He now runs the much smaller Janus Global Unconstrained Bond Fund.

The case is Gross v. Pacific Investment Management Co et al, California Superior Court, Orange County, No. 2015-00813636.

In Depth

Financial Industry Blockchain Consortium R3 To Open-Source Platform Code

Oct 20 2016 | 9:03pm ET

Bitcoin's blockchain technology has spawned a flurry of activity among fintech startups...


U.S. Trust's Beard: The Rapid Growth of the Art Lending Industry

Oct 7 2016 | 10:55pm ET

Alternative investment managers have emerged as some of the most significant art...

Guest Contributor

Hedge Fund Marketing – Tips for Your Initial Sales Meeting

Sep 29 2016 | 5:46pm ET

There are two main goals a hedge fund should have for an initial in-person sales...