Pimco has stepped up a legal war of words with its former chief investment officer Bill Gross, saying he could have been fired for abusing his colleagues in the months leading up to his abrupt resignation in 2014.
The fixed income asset management company on Monday filed its response to Mr Gross's claim that he is owed at least $200m in lost bonuses and compensation.
Pimco failed last month in an attempt to have the lawsuit thrown out, opening up the prospect of a long and potentially embarrassing series of hearings and disclosures about its culture and remuneration.
The company has been working to stem customer outflows since Mr Gross shocked the asset management industry by walking out in September 2014. Mr Gross, meanwhile, has been working to re-establish his reputation as the "bond king" at Janus Capital, a smaller firm.