Pimco Will Fight Shareholder Lawsuit Over Fees, Salaries
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Pacific Investment Management Co. will fight a lawsuit by a shareholder of its Pimco Total Return Fund alleging the company gouges investors with excessive advisory fees to support billion-dollar bonuses for top executives.
Pimco was sued Dec. 31 in Seattle federal court over claims that fees totaling $1.2 billion in 2013 are unfair and excessive, bear no reasonable relationship to the services rendered and couldn’t have been the product of arms length negotiations, according to the complaint.