Gross filed for a request for dismissal of the suit, and all of its proceeds will go to charity — to the Sue and Bill Gross foundation.
The fund manager sued his former employer back in 2015, claiming his dismissal from the company was a breach of contract and a breach of covenant of good faith and fair dealing. Gross said at the time that he suffered damages in excess of $200 million.
"I knew I didn't have much to gain except for my self respect," Gross said of the lawsuit after it was filed and on leaving Pimco. "I thought I was treated unfairly on the way out from Pimco ... They fired me without really giving a reason for it. There was a small coup of individuals that threatened to resign if I didn't."
Pimco declined comment to CNBC on this story.
Pimco will reportedly name its 'Founders Room' after former employee Gross, who left the company in September of 2014 amid much confusion about his investment returns and what was claimed to be erratic behavior.
Since its start in 1971, Gross helped build Pimco into one of the largest asset managers in the world.
The first sentence of Gross' once-active lawsuit said that he was pushed out of the company by a "cabal" of Pimco managing directors who were "driven by a lust for power, greed, and a desire to improve their own financial position."
The suit also targeted Mohamed El-Erian, who was once in line to succeed Gross, and at the man who succeeded Gross as Pimco's group chief investment officer. El-Erian is now the chief economic adviser at Allianz, Pimco's parent company.