The size of the settlement, described as “amicable” in PIMCO’s statement, wasn’t disclosed. Various media reports put a figure of around $81 million. PIMCO declined to comment on the figure when asked by this news service.

Gross, who co-founded the firm in 1971, left the firm suddenly in 2014. Gross launched the lawsuit in 2015, alleging he was ousted by a “cabal” of managers who wanted a larger share of the firm’s bonuses. PIMCO denied those claims, saying that Gross had abandoned the business.

A high-profile commentator, Gross could move markets because of PIMCO’s sheer size of assets. As at the end of June last year, it had $1.5 trillion in AuM. In the immediate aftermath of Gross’s departure, some investors pulled money out.

Gross said the lawsuit was not motivated by money and that any proceeds from the case will be given to charity. 

“PIMCO has always been family to me, and, like any family, sometimes there are disagreements. I’m glad that we have had the opportunity to work through those, and see the PIMCO founders receiving the recognition they deserve. I am honored to be included in their ranks and to know that PIMCO is in capable hands,” Gross said in a statement earlier this week. 

In its statement, PIMCO said: “PIMCO recognizes the enormous contribution to its success made by Mr Gross and its other founders and leaders, such as James Muzzy, William Podlich, Bill Thompson, Walter Gerken, and Chris Dialynas, the visionaries who created a global investment powerhouse, and an entire industry of fixed-income investments.”

“Additionally, through the leadership of the PIMCO Foundation, which was created and originally funded by Mr Gross, PIMCO donates millions of dollars annually to ensure that communities throughout the world are empowered through education, health support, gender equity, and other programs vital for the connected 21st century,” it continued.

“PIMCO is also taking steps to ensure that the legacy and contributions of its founders, as both corporate and charitable citizens, are honored and preserved. To that end, PIMCO is dedicating a new `Founders Room’ in their honor at PIMCO’s Newport Beach headquarters. Additionally, the PIMCO Foundation is naming Mr. Gross a `Director Emeritus’ and establishing an annual `Bill Gross Award’ in recognition of his career-long dedication to the charitable endeavors that are at the heart of the Foundation’s mission,” it added. 

The lawsuit case was William H Gross v Pacific Investment Management Company LLC, et al, Orange County Superior Court Case No. 30-2015-00813636-CU-BC-CJC. Mr Gross was represented by Patricia L Glaser, G Jill Basinger and Rory S Miller of Glaser Weil Fink Howard Avchen & Shapiro. PIMCO and Allianz Asset Management of America were represented by David Boies, Christopher E Duffy, Scott R Wilson, and Qian A Gao of Boies Schiller Flexner LLP.

PIMCO is owned by Allianz, the Germany-headquartered financial group.