Gross, Pimco settle breach-of-contract suit

Former Pimco co-founder and bond guru Bill Gross settled a wrongful termination and breach-of-contract suit against his ex-employer, the two parties said Monday in a joint statement released by Pimco.

The terms of the settlement were not released, but a person familiar with the matter said Pimco agreed to pay $81 million. Pimco is owned by German insurance and financial giant Allianz.

Gross, now a top fund manager at Janus Capital Group, said the funds would go to charity.

"Pimco has always been family to me, and, like any family, sometimes there are disagreements," Gross said. "I'm glad that we have had the opportunity to work through those."

The company said it would establish a new "Founders Room" at its California headquarters dedicated to Gross and other key founders and leaders, and also will make Gross a "Director Emeritus" and establish an annual "Bill Gross Award."

"Bill Gross has always been larger-than-life," said Pimco group chief investment officer Dan Ivascyn, who praised Gross for building Pimco "from the ground up."

The gushing tone from both sides marks a sharp reversal from the acrimony after Gross' departure.

In his original suit, filed in October 2015 in California, Gross asserted that his firing the prior year was engineered by a "cabal" who was "driven by a lust for power, greed, and a desire to improve their own financial position."