Pacific Investment Management Co. has responded to a lawsuit from one of its senior counsel, who alleges that the firm's leaders, including its top in-house lawyers, systematically discriminate against employees because of their gender and race. 

Andrea Martin Inokon, who is black, alleged in a complaint filed in September in California's Orange County Superior Court that PIMCO "operates as a fraternity" where white men dominate leadership roles and treat women and minorities unfairly. 

She is seeking monetary damages and to be promoted to executive senior vice president. She also wants a court-ordered audit of the firm's compensation methods.

In its Nov. 12 response, PIMCO adamantly denied Inokon's allegations and asserted that she received negative performance feedback from "many colleagues, including women in senior leadership roles," before she sued. The firm also described Inokon's frat environment allegations as "sensationalized and unfounded."

PIMCO has asked the court to dismiss the suit. It also filed a motion to compel arbitration under the provisions of a long-term cash bonus plan that Inokon accepted as part of her compensation package. 

Inokon, who joined PIMCO's headquarters in Newport Beach, California, in 2011, alleged that "senior male officers encouraged drinking and fraternization at strip clubs, golf outings and poker nights" to "strengthen PIMCO's fraternity culture and male brotherhood at the disadvantage of its female professionals."

She also asserted that "sexist, sexualized comments and conduct often permeates the office environment, where female professionals regularly endure comments on their appearances, their attire, and their body." 

Her complaint names PIMCO, its managing director and global general counsel, David Flattum, and managing director and deputy GC Rick LeBrun as defendants. Nancy Abrolat of Los Angeles represents Inokon. 

Inokon alleged that women hold three of the nine seats on the firm's executive committee and 12 of 80 managing director positions globally. But PIMCO contends that the suit references "skewed and inaccurate statistics to misrepresent the diversity of PIMCO's leadership." 

According to PIMCO, women account for three of the firm's five deputy GCs and executive vice presidents and two of the four managing directors in the legal and compliance department, one of whom also is an ethnic minority. 

The firm asserts that Inokon received fair compensation and was not denied promotions because of her race, gender or the fact that she became pregnant twice while working at PIMCO. 

PIMCO and its attorneys at Orrick, Herrington & Sutcliffe argue that Inokon only accused the firm of discrimination after she had a disagreement with her manager over whether she could leave the company's Newport Beach office and work remotely from Raleigh, North Carolina, where PIMCO doesn't have an office. 

Inokon wanted to be closer to her mother, who was "recovering from a murder attempt," according to her suit. She alleges that her manager initially agreed to allow her to work from Raleigh but later reneged on the deal and offered her a consulting position as a remote employee. 

PIMCO contends that the manager said he would consider alternative work arrangements but never made any promises. The firm also notes that Inokon admitted in writing that her manager said he needed to obtain approval before he could allow her to work remotely. 

PIMCO says it offered to let Inokon stay on as senior counsel and senior VP if she relocated to the firm's New York office, where she'd have to work four days a week and have one day to work remotely. 

Inokon ended up moving to Raleigh and notifying PIMCO that her doctor restricted her ability to travel because she was pregnant. The firm subsequently allowed her to work from Raleigh in her current role for the duration of her pregnancy. 

She has agreed to work out of PIMCO's office in New York for four days a week when she returns from maternity leave, according to the firm's response.

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