German insurer firm Allianz SE (ADR)(OTCMKTS:AZSEY) stated that a lawsuit filed by renowned bond investor and ex-employee Bill Gross over his dismissal from its asset management unit known as Pacific Investment Management Co had no merit. The company reported that they will not comment on the charges other than that the case has no merit.
In a complaint filed earlier in month, Gross stated that Pimco’s MDs were driven by a lust for greed, power, and a desire to enhance their own reputation and financial position in their ultimately successful plan to oust him. His dismissal was announced on September 26, 2014.
The details
Billionaire bond investor Gross sued his ex-employer Pimco and its parent Allianz for $200 million, stating that a greedy cabal of officials drove him out of the company he helped establish because they wanted his lucrative bonus for themselves. This lawsuit ratchets up the problems between Gross, who is now engaged at Janus Capital Group Inc, and Allianz’s Pimco, which he founded over four decades into a profitable bond fund company.
Gross had been on track to get a bonus in 2014, with a major part compensated late in the year. He accused Allianz’s Pimco of breach of contract, bad faith and constructive termination. Michael Reid, a spokesman for Pimco said that this case has no merit and company’s legal team will respond in court. A Janus spokeswoman termed the lawsuit as a personal matter associated to Bill. Gross lead attorney Patricia Glaser stated that any recoveries will be forwarded to charity.
Known as the “Bond King,” Gross exited company some 8 months after Mohamed El-Erian resigned due to Gross’s arrogant management style. This arrogant style generated much negative hype in 2014, as did weak performance and investor outflows of the Pimco Total Return fund, which Gross turned into the ‘largest bond fund by assets.’
Allianz SE (ADR) (OTCMKTS:AZSEY) enjoyed a positive session yesterday but the narrow range of the price for the day and the dry volume pattern were not very encouraging for the bulls. The stock managed to end the last trading session with a minor gain of 0.27% with the volume of the day shrinking to 188,000, much lower than the daily average of 238,000. The biggest hurdle for the bulls in the short term is not very far away any more and the content bulls run the risk of a nasty surprise any day now.
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