Newport Beach-based Pacific Investment Management Co. was sued by an investor alleging that the bond fund manager tried to corner the price on billions of dollars worth of 10-year Treasury futures contracts.
Pimco was said to have created artificially high prices in the futures market to its benefit, according to the suit.
“We strongly believe the complaint is without merit and we intend to vigorously defend ourselves,” Pimco spokesman Mark Porterfield said.
Investor Raymond Chiu filed the suit, which concerns June’s 10-year Treasury futures contracts traded on the Chicago Board of Trade.
Futures are contracts to buy or sell securities at a set price and time.
Chiu alleged that Pimco owned about $10 billion of contracts, according to a Bloomberg news report.
