PIMCO founder William H. Gross says his former firm has become so unreasonable after a falling out over an unpaid bonus that it now seeks to force his attorneys to defy the realities of global travel.
Mr. Gross' accusations of “bad faith obstruction" against Pacific Investment Management Co. include its push to schedule depositions for Nov. 2 in London and Nov. 3 in Hong Kong, seven time zones to the east.
Lawyers for Mr. Gross and PIMCO are due in court Sept. 16 to argue what documents Mr. Gross should get to pursue his claims. It will be first time they square off in court in the lawsuit he filed almost a year ago accusing the firm of forcing him out so that it wouldn't have to pay him his cut of the bonus pool.
Mr. Gross, who now runs the Janus Global Unconstrained Bond fund, is asking a California state judge in Santa Ana to order PIMCO to turn over internal records on compensation practices for other executives and also documents about PIMCO's investment strategy that he claims he needs to pursue his lawsuit over his $200 million bonus.
Mr. Gross, according to a copy of the filing Friday in California state court obtained by Bloomberg News, asked that his former employer be sanctioned for intentional misconduct for not providing the potential evidence he says he's entitled to and setting unworkable dates for his lawyers to get sworn testimony from PIMCO executives.
"PIMCO's bad faith obstruction has cost Mr. Gross substantial time in which to marshal the facts necessary to prosecute his claims, and it has cost Mr. Gross substantial money in attorneys' fees seeking to bring PIMCO's conduct to heel," according to the filing.
PIMCO said in a July 26 filing that the information Mr. Gross is asking for reaches "far beyond the realm of issues relevant” to his lawsuit and into "virtually every aspect of PIMCO's business."