Bill Gross, who was fired from Pimco four decades after he co-founded the investment firm, has settled his lawsuit against the company for just over $81 million, sources told CNBC on Monday. He also gets a “Founders Room” named after him at the company’s Newport Beach headquarters, along with the launch of a “Bill Gross Award,” according to a Pimco press release.
A lawyer representing the Pimco co-founder filed a request in California state court to dismiss the fund manager’s suit over his 2014 departure from the company. All proceeds from the settlement will go to charity — to the Sue and Bill Gross foundation.
Gross sued Pimco in 2015, claiming his dismissal from the company was a breach of contract, and a breach of covenant of good faith and fair dealing. Gross said at the time that he suffered damages in excess of $200 million.
“I knew I didn’t have much to gain except for my self respect,” Gross said on leaving Pimco. “I thought I was treated unfairly on the way out from Pimco. … They fired me without really giving a reason for it. There was a small coup of individuals that threatened to resign if I didn’t.”
Pimco said in a statement Monday that it “recognizes the enormous contribution to its success made by Mr. Gross.”
“Bill Gross has always been larger-than-life,” Dan Ivascyn, Pimco’s group chief investment officer, said. “He has a well-deserved stellar reputation as an investor and a philanthropist.” Read More.