Allianz SE (ADR) (OTCMKTS:AZSEY) has been enjoying a huge rally in the short term and the last session has turned out to be just the latest display of the bullish strength. The stock ended the day with another gain of nearly 1% with the volume surging to 586,000 against the daily average of 431,000. On the other hand, the bulls may feel a bit worried with the proximity of the strong supply area around $17.50, which is capable of pushing the price down sharply with the price structure already overstretched in the short term. Bulls may protect some profit at this point.
A year after Mr. Bill Gross was expelled from Allianz SE (ADR)(OTCMKTS:AZSEY)’s PIMCO, he is seeking vindication. In a lawsuit, the co-founder of Pacific Investment Management Co. charged the company and several of its executives of ousting him out so as to claim his 20% share of profit pool. Gross seeks massive compensation from the firm, and plans to donate the entire amount to charity in event of win.
The highlights
As per the filed lawsuit, Gross accused Allianz’s PIMCO and its employees and stated that they were driven by a desire for power and greed and a want to enhance their financial standing and reputation at the expense of investors. A cabal of company’s MD planned to drive him out in order to claim Gross’s percentage stake in the earnings of Pimco. A spokesman for PIMCO said that there are not merits in this case and the legal team will answer to allegations in court.
The focus of company remains on customers and respective investment portfolios. For Gross, who is worth nearly $2 billion, the battle with Allianz’s Pimco is not about the profits, but it is about his name and reputation and how he will be portrayed in the history books? Gross, whose attitude at Pimco had been stated in media reports as arrogant, said in May 2015 he had been a wimp for not fighting up for his reputation. He intends to expose unethical, dishonest and improper behavior by the officials who ousted him.
The details
The lawsuit highlights a detailed account of the instances leading up to Gross’s dismissal in 2014, a move that distressed bond markets and provoked record redemptions from the world’s largest mutual fund. It shows Gross as a supporter for lower fees and conventional investor who was dismissed by other executives planning to move into higher-fee and riskier assets products.
