One of the most famous investment figures and commentators is taking his former employer to court in the US following his exit last September.

Renowned bond market investor and commentator Bill Gross, whose views often affected prices of fixed income and related assets, is suing his former employer PIMCO for over $200 million for breach of contract and for conspiring to kick him out of the firm that he founded, media reports said.

Gross’s departure last September was followed by a heavy outflow of client funds. For example, as was reported by this publication, PIMCO’s flagship Total Return Fund suffered record outflows of $27.5 billion in October 2014 following Gross’s exit.
Gross formed the business in the early 1970s. 

The lawsuit, filed yesterday in Orange County, CA, claims that PIMCO’s senior management schemed to remove him in an internal power play. 

The firm has responded by saying the case has no merit.

One report, by the Guardian newspaper (UK) says the lawsuit focuses on the conflict between Gross, Mohammed El-Erian — once considered Gross’ successor at PIMCO — and other executives at the firm. In it, Gross contends that El-Erian wanted to move the investment house out of its traditional bond funds and into other types of investments, often with higher risk and higher returns.

After a protracted fight, El-Erian left PIMCO in 2014 in what became a very public departure. He remains an economic advisor for German insurer Allianz SE, PIMCO’s parent company.

Gross contends that El-Erian’s departure gave other executives the leverage to remove Gross from his positions of power, eventually leading to Gross leaving the company.