Business

'Bond King' Bill Gross settles Pimco feud for $81m

Bill Gross Image copyright Reuters
Image caption Bill Gross has been nicknamed the "Bond King" from making good bets on US Treasury bonds

Star trader Bill Gross has ended a "family disagreement" with his former firm Pimco, in a settlement worth an estimated $81m (£65m).

The billionaire, dubbed Wall Street's "Bond King", sued Pimco after his abrupt departure from the firm in 2014.

Pimco, the world's largest bond fund, has agreed to pay Mr Gross in what both sides called an "amicable" settlement.

"Pimco has always been family to me, and, like any family, sometimes there are disagreements," Mr Gross said.

"I'm glad that we have had the opportunity to work through those, and see the Pimco founders receiving the recognition they deserve," he said.

'Contribution'

Mr Gross, a Pimco co-founder, had been suing the firm for at least $200m, which he claims he lost after being forced to leave.

He had claimed he was forced out so that his colleagues could get his share of the bonus.

In the statement, Pimco said it recognised the "enormous contribution to its success" from Mr Gross and other co-founders.

Mr Gross, who moved to rival Janus Capital in 2014, also repeated that his lawsuit had never been about money.

The terms of the settlement are confidential. However, both sides have said that any proceeds from the suit will be donated to charity.

Mr Gross earned the moniker "the Bond King" from making good bets on US Treasury bonds, particularly during the dot com bubble and the housing crisis.

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