Photo via [Public Domain] Wikimedia Commons
Photo via [Public Domain] Wikimedia Commons
A tycoon “amazed” by his own career success Monday withdrew his breach of contract lawsuit against the Newport Beach money managing company he founded — Pacific Investment Management Co., or PIMCO — after reaching a settlement reportedly amounting to $81 million.

He’d originally condemned top officials of PIMCO described in the lawsuit as “driven by a lust for power (and) greed,” but the two warring sides were all laudatory after the settlement was announced.

The lawsuit, which was filed in Orange County Superior Court in October 2015, alleged that Bill Gross had sustained losses of “hundreds of millions of dollars” and was seeking at least $200 million.

In the lawsuit, Gross alleged that he was ousted from the company he founded by a “cabal” of PIMCO managing directors, who were “driven by a lust for power, greed, and a desire to improve their own financial position at the expense of investors and decency.”

In a news release issued Monday morning, however, the two sides extended olive branches.

“PIMCO has always been family to me, and, like any family, sometimes there are disagreements,” Gross said. “I’m glad that we have had the opportunity to work through those and see the PIMCO founders receiving the recognition they deserve. I am honored to be included in their ranks and to know that PIMCO is in capable hands.”

PIMCO officials said they were “taking steps to ensure that the legacy and contributions of its founders, as both corporate and charitable citizens, are honored and preserved.”

Officials would not confirm or deny the settlement figure, but a source said it was about $81 million.

Gross, who said his legal action was not about “money,” will donate the proceeds to charity.

“I’ve always been amazed by my success, and grateful for the opportunity to make a difference in the world,” Gross said. “I’m glad that can continue today.”

In the lawsuit, Gross alleged that he was ousted from the company he founded by a “cabal” of PIMCO managing directors, who were “driven by a lust for power, greed, and a desire to improve their own financial position at the expense of investors and decency.”

In a news release issued Monday morning, however, the two sides extended olive branches.

“PIMCO has always been family to me, and, like any family, sometimes there are disagreements,” Gross said. “I’m glad that we have had the opportunity to work through those and see the PIMCO founders receiving the recognition they deserve. I am honored to be included in their ranks and to know that PIMCO is in capable hands.”

PIMCO officials said they were “taking steps to ensure that the legacy and contributions of its founders, as both corporate and charitable citizens, are honored and preserved.”

The money manager plans to dedicate a new “Founders Room” in the Newport Beach offices. Also, the PIMCO Foundation will name Gross “director emeritus” and is “establishing an annual Bill Gross Award in recognition of his career-long dedication to the charitable endeavors that are at the heart of the foundation’s mission.”

Dan Ivascyn, PIMCO’s group chief investment officer, said Gross “has always been larger than life,” adding that Gross “has a well-deserved stellar reputation as an investor and a philanthropist.”

“Bill has had an enormous influence on PIMCO and the careers of many who have passed through its halls. He built this business from the ground up and we have great respect and admiration for his talents,” Ivascyn said.

—City News Service

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