PIMCO denies claims in discrimination lawsuit

Pacific Investment Management Co. categorically denied claims of gender and pay discrimination, harassment and retaliation Wednesday in its first legal response to a lawsuit filed on behalf of five current and former female employees in November and amended in February.

In its response filed in California Superior Court in Santa Ana, PIMCO said it "vigorously denies that it discriminated, harassed or retaliated against the plaintiffs in any manner" and in fact "granted the accommodation requests" of the five plaintiffs for medical leave.

PIMCO added that "salacious and unfounded sex harassment allegations" by two plaintiffs "legally fail because they are plainly time-barred and have been included in this lawsuit for improper purposes, notably to garner media attention and inflame PIMCO's clients into questioning PIMCO's commitment to inclusion and diversity."

In the filing, PIMCO said the firm maintains robust anti-discrimination, harassment and retaliation policies and urges employees to report incidents violating the policies, noting that complaints are immediately investigated and action is taken if warranted. The firm said it also offers a variety of programs supporting women, Black and LGBQT employees.

In its response to the lawsuit, PIMCO said the sources of disputes between the firm and the plaintiffs were performance related rather than about discrimination or other employment issues.

"As the court filing also shows, when the language the plaintiffs used to create a false image of a workplace is stripped away, what remains are five separate and unrelated instances of disputes over performance, pace of advancement and workplace logistics," PIMCO spokesman Michael Reid said in an email.

PIMCO also criticized the plaintiffs' attorney, Nancy Abrolat, head of Abrolat Law, El Segundo, Calif., in its filing.

Ms. Abrolat has "cobbled together unrelated and scandalous contentions that are riddled with fabrications, inaccuracies and irrelevant information," PIMCO said in its filing. "The conduct appears to be designed to pressure PIMCO into settling defective allegations on a 'strength in numbers will overcome deficiencies in facts and law' strategy."

Ms. Abrolat said in an email that the allegations in PIMCO's response to the lawsuit and its "abysmal numbers when it comes to diversity and inclusion speak for themselves. It is absurd (that) the company is spending so much effort employing delay tactics to stop these women from seeking justice, while doing absolutely nothing to address systemic issues of harassment, abuse and discrimination under their own roof."

PIMCO, in its final point in the filing, said it denies "the plaintiffs' sensationalized and unfounded allegations of a fraternity culture within the firm" and provided its employee diversity statistics.

Within the firm's senior leadership group, including managing director, executive vice president and senior vice president positions, 25% are women (up from 11% in 2010); 70% are over 40 years old; and 27% are minorities (up from 9% in 2010), PIMCO said in the filing.

In addition, PIMCO said, 36% of PIMCO's executive committee are women.

PIMCO managed $2.21 trillion as of Dec. 31.