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Gross Lawsuit Doesn't Change Our PIMCO Ratings

Our view of PIMCO and its flagship Total Return are unchanged, but we'll be watching for any new information on PIMCO's fee practices.


Bill Gross filed a lawsuit against his former employer, PIMCO, on Thursday. The suit alleges that several top executives at PIMCO worked to push him out of the firm in an effort to boost their pay and to expand their firm into riskier asset classes. Gross is seeking at least $200 million in damages for earned compensation that he claims he was denied. 

The lawsuit does not currently affect our opinion of PIMCO's funds or how they're run. Our Stewardship Grade for PIMCO is a C, and  PIMCO Total Return (PTTRX) has a Morningstar Analyst Rating of Bronze. 

Eric Jacobson has a position in the following securities mentioned above: PTTRX. Find out about Morningstar’s editorial policies.