(Bloomberg) -- Bill Gross and Pimco have settled a breach of contract suit the money manager filed in 2015, a year after he was ousted from the firm he co-founded.
The two sides announced the accord in a joint statement Monday, calling the agreement "amicable."
"Pimco has always been family to me, and, like any family, sometimes there are disagreements," Gross said in the statement, which added that he is glad "to know that Pimco is in capable hands."
Gross, 72, sued Newport Beach, California-based Pimco after he resigned and jumped to Janus Capital, contending he was ousted by a "cabal" of executives who wanted a larger share of his bonus, which was $290 million in 2013. He also asserted in the suit that the executives wanted to offer more high-fee products to investors rather than Pimco's traditional bond funds. Gross now runs the $1.9 billion Janus Global Unconstrained Bond Fund.
Pimco agreed to pay $81 million to settle Gross's claim, which will be donated to the billionaire's family foundation, according to a person with knowledge of the matter, who asked not to be named because those terms weren't disclosed. Gross will partially match the settlement to bring the total charitable contribution to $100 million, the person said.
As part of the agreement, Pimco acknowledged Gross's contribution as a co-founder of the firm and named him as a director emeritus of Pimco's charitable foundation.
"Bill Gross has always been larger-than-life," Dan Ivascyn, who replaced Gross as Pimco's group chief investment officer, said in the statement. "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."
The trial was scheduled to begin in September.
The case is Gross v. Pacific Investment Management Co., 30-2015-00813636, California Superior Court, Orange County (Santa Ana).