Pacific Investment Management Co (Pimco) has stepped up its legal battle with the firm’s co-founder, Bill Gross, by saying he leaked confidential pay information to the media and may have destroyed documents in violation of court rules, according to a Bloomberg report.
The allegation was made ahead of this Friday’s court hearing on Gross’s lawsuit, accusing Pimco of forcing him to resign so the company wouldn’t have pay him a bonus.
Gross is asking a judge to order Pimco to provide him with the internal documents he says are required to prove his case.
Pimco said in its filing: “Discovery has revealed that Mr. Gross went so far as to leak confidential Pimco compensation data to the news media after he left the company, as part of his sad obsession with attacking his former employer and colleagues.”
Liquidity Constraints in 2021 – What is the Best Path Forward?Go to article >>
According to Pimco, Gross leaked the information in November 2014, after leaving the company, and was employed at Janus Capital Group.
Gross also allegedly provided several managing directors with confidential 2013 bonus information for each of the firm’s managing directors in August or September 2014, while he was still at Pimco, who said that he mailed the information anonymously.
Gross has accused the asset management firm of “bad faith obstruction” for withholding potential evidence about its investment strategy and its compensation practices and argued that information will support his claims that other management directors wanted his share of the bonus pool after falling out with them.
According to Bloomberg, two months after Gross left the firm, he received a bonus of around $290 million in 2013. Other bonuses included $230 million for Mohamed El-Erian, then Pimco’s chief executive officer, $70 million for Daniel Ivascyn, who succeeded Gross as chief investment officer, and $45 million for Douglas Hodge, who succeeded El-Erian as CEO.
The court order has requested that Gross needs to produce documents he has so far held back. However, Gross claims that he only has printouts of most of the e-mails he has given the company so far, indicating that he may have deleted the electronic versions even after he was required to preserve these because of the litigation.
The first courtroom face-off is set for Friday.