The most high profile post-breakup fight in the mutual fund industry is coming to close. Bill Gross
have officially ended their feud. And there's more to this peace deal than just money.
| Bill Gross|
Janus Capital Group
Gross and his former firm issued
a joint statement, confirming that they've "reached an amicable settlement" of Gross' lawsuit against Pimco. The two sides are keeping the settlement terms confidential, though CNBC reports
that Pimco is shelling out $81 million to settle the suit. That translates into 40.5 percent of the $200 million in damages Gross asked for
when he first filed suit in October 2015.
Both sides confirm that, as Gross, #814
on the Forbes
world billionaires list, has promised from the beginning, he will donate any proceeds from the lawsuit to charity.
Pimco is also honoring Gross and its other founders by dedicating a "Founders Room" at Pimco headquarters in Newport Beach, California. The fixed income giant's charity, the Pimco Foundation is also creating an annual "Bill Gross Award" in honor of Gross' charitable endeavors and is making Gross director emeritus of the foundation.
"Pimco has always been family to me, and, like any family, sometimes there are disagreements," Gross states. "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."
"Bill Gross has always been larger-than-life," states Dan Ivascyn
, group chief investment officer of Pimco. "He 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."
Pimco in September 2014 and joined Janus
. He sued Pimco a year later, claiming he was pushed out of the company by a "cabal ... driven by a lust for power, greed, and a desire to improve their own financial position." A month later Pimco fired back
, accusing Gross of engaging in "reputational warfare."
The Gross v. Pimco
trial was scheduled to start in September 2017, Bloomberg reports
The Financial Times
, the New York Times
, and the Wall Street Journal
all reported today on the lawsuit settlement.
Neil Anderson, Managing Editor
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