Compliance December 30, 2011
TCW Group and Gundlach Reach Settlement
The ongoing legal battle between the TCW Group and Jeffrey Gundlach appears to have reached an end.
Reported by Nicole Bliman
The Trust Company of the West Group (TCW) and DoubleLine Capital – founded by former TCW employee, Jeffrey Gundlach – have settled all claims. The terms of the settlement are confidential. Money management firm TCW sued Gundlach when he left the firm and started DoubleLine Capital, accusing him of taking proprietary information and poaching from TCW’s staff.
In September, Gundlach was awarded $66.7 million by a jury over his separation from TCW. A California jury awarded TCW no punitive damages, but found that Gundlach and his co-defendants breached their fiduciary duty by taking trade secrets belonging to TCW (see “Former TCW Fund Manager Liable for Stealing Trade Secrets, but Wins Pay Claim”).