Key Takeaways
- • Pimco, the $2.2 trillion bond manager headquartered in Newport Beach, California, faces a run of lawsuits and negative press that has prompted clients to question its workplace culture, according to Business Insider.
- • Pension consultant NEPC, which advises several Pimco clients, convened senior Pimco executives on a February 2021 conference call to address the mounting litigation and headlines.
- • In January 2021, 21 current and former female employees and people of color sent a letter to Pimco's executive management denouncing how the firm treats them.
- • A November 2020 Orange County Superior Court lawsuit by two female employees alleging discrimination, harassment, and retaliation, and describing a "fraternity culture," gained three more plaintiffs in February 2021; Pimco denies the allegations and vows to fight them.
- • Earlier cases include a 2019 suit by a former senior in-house lawyer alleging gender, racial, and disability discrimination, and a 2018 resignation of the head of portfolio-management risk following an internal investigation into alleged inappropriate touching at a charity event.
Summary
Pimco, the $2.2 trillion bond giant headquartered in Newport Beach, California, has faced a series of lawsuits and adverse press coverage over the past several years, and its clients are beginning to ask questions. Business Insider reports that Pimco has repeatedly made headlines for the wrong reasons, prompting its scrutiny from investors.
In February 2021, the pension consultant NEPC, which advises several Pimco clients, gathered some of its most senior executives for a conference call with the asset manager. NEPC wanted to address the growing list of lawsuits and negative headlines surrounding the firm. The previous month, 21 women sent a sharply worded letter to Pimco's executive management team denouncing how the company treats the women and people of color who work there. The letter was written by current and former employees.
The letter followed a November 2020 lawsuit filed in Orange County Superior Court by two female employees, who accused the firm of discrimination, harassment, and retaliation and alleged that Pimco had a "fraternity culture." In February 2021, three more women joined that lawsuit. Pimco has denied the allegations in the ongoing litigation and has vowed to fight them in court.
The firm has also faced earlier employment litigation. In 2019, a former senior in-house lawyer filed a suit alleging gender, racial, and disability discrimination. The year before, the head of the firm's defined-contribution practice sued over alleged gender- and age-based discrimination; that suit was settled. In 2018, the head of portfolio-management risk resigned after an internal investigation into allegations that he inappropriately touched a lower-ranking Pimco employee at a charity event, according to a Wall Street Journal report.
Business Insider states it conducted more than 30 interviews and reviewed hundreds of pages of company and investor disclosures to examine why Pimco is so often in the news for the wrong reasons.
In February 2021, the pension consultant NEPC, which advises several Pimco clients, gathered some of its most senior executives for a conference call with the asset manager. NEPC wanted to address the growing list of lawsuits and negative headlines surrounding the firm. The previous month, 21 women sent a sharply worded letter to Pimco's executive management team denouncing how the company treats the women and people of color who work there. The letter was written by current and former employees.
The letter followed a November 2020 lawsuit filed in Orange County Superior Court by two female employees, who accused the firm of discrimination, harassment, and retaliation and alleged that Pimco had a "fraternity culture." In February 2021, three more women joined that lawsuit. Pimco has denied the allegations in the ongoing litigation and has vowed to fight them in court.
The firm has also faced earlier employment litigation. In 2019, a former senior in-house lawyer filed a suit alleging gender, racial, and disability discrimination. The year before, the head of the firm's defined-contribution practice sued over alleged gender- and age-based discrimination; that suit was settled. In 2018, the head of portfolio-management risk resigned after an internal investigation into allegations that he inappropriately touched a lower-ranking Pimco employee at a charity event, according to a Wall Street Journal report.
Business Insider states it conducted more than 30 interviews and reviewed hundreds of pages of company and investor disclosures to examine why Pimco is so often in the news for the wrong reasons.
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