Former PIMCO Executive Claims He Was Fired for Reporting Firm’s Financial Misconduct
A former executive at the Pacific Investment Management Company (PIMCO) has filed a lawsuit claiming that he was fired last year in retaliation for reporting financial misconduct at the firm to federal law enforcement officials. PIMCO is headquartered in Newport Beach, California, and manages nearly $2 trillion in assets, making it one of the world’s largest money management firms.
The plaintiff claims that senior executives at PIMCO engaged in insider trading and manipulated the ratings and values of certain bond holdings to the detriment of clients, amongst other misconduct. According to the plaintiff, he reported the alleged misconduct to his supervisor and compliance officials. The plaintiff claims that in response to his complaints management lowered his pay and subjected him to “verbal abuse.”
The plaintiff alleges that he was fired three weeks after informing PIMCO that he reported his complaints of misconduct to the federal government. According to the complaint, the plaintiff was told by PIMCO that he was fired for “performance reasons,” but the plaintiff, who had been with the company for more than a decade, maintains that he was terminated because of his cooperation in an investigation into the firm’s activities.
Three days after filing the lawsuit, the plaintiff dismissed the case. It is rumored that the parties are in talks to resolve the dispute but the parties have not confirmed that is the case. Reuters reports that David Spivak and Philip Aidikoff, the the lawyers representing the plaintiff, declined to comment. Reuters also reports that a PIMCO spokesman said, “As a matter of policy, we do not comment on legal matters.” The PIMCO spokesman also said, “However, PIMCO performs an appropriate review of all employee complaints or concerns.”
Whistleblower statutes protect employees from retaliation for reporting information about an employer’s violation of state and federal laws and regulations. Whistleblower statutes make it is unlawful for an employer to retaliate against an employee for reporting an employer’s potential violation of the law to a state or federal agency.
If you believe you had been demoted, retaliated against, or fired for unjustified reasons, contact Khorrami, LLP for a confidential evaluation of your rights.