"Bond King" Bill Gross $200 million Pimco's lawsuit will continue after a California superior judge has ruled sufficient evidences of breach-of-contract against the Pacific Investment Management Co.
California Superior Judge Martha Gooding declared that Gross' $200 million Pimco's lawsuit is strong that it would continue to be heard in court, News Max reports. The "Bond King" filed the lawsuit in 2014 in the midst of his dismissal from the company that he co-founded. Gooding's ruling was tentative that led to the cancellation of its scheduled trial.
"Gross alleges sufficient facts based on allegations concerning his status as the founder, a 40-year history, an alleged track record of bringing success and/or fame to the enterprise, as well as a series of alleged oral promises/assurances of continued employment," Judge Gooding said of Gross.
As per Reuters, the lawyers for Pimco claimed that they are confident that they would win the case. In Sept. 2014, Gross stepped down from his position from the company after several speculations revealed weak returns at Pimco Total Return and his alleged poor management style. During the time, Gross made headlines for building the world's largest bond fund. In Oct. 2015, Gross filed a $200 million Pimco lawsuit. He alleged that the company officials plotted to remove him and divided his bonus among themselve.
"We are very pleased with the court's ruling and are looking forward to the opportunity to prove our case in court," Patricia Glaser, a lawyer for Gross said.
CBS News reported that if Gross' $200 million Pimco lawsuit would prevail in court, he would donate the proceeds to charity. Gross is now connected with Janus Global Unconstrained Bond Fund and manages the $1.3 billion Denver-based Janus Capital Group Inc. Gross has a net worth of $1.95 billion and it was revealed that most of the fund in Janus came from the "Bond King."
Pimco has denied merits on Gross' $200 million Pimco lawsuit. The company claimed that they could dismiss Gross anytime without cause. Pimco has until April 4 to formally answer the lawsuit.
