Thursday, 25 August 2016
Last updated 16 min ago
Sep 19 2011 | 12:36pm ET
DoubleLine Capital founder Jeffrey Gundlach has won his lawsuit against former employer TCW Group—but TCW has won its case against Gundlach, too.
A Los Angeles jury awarded Gundlach $66.7 million in unpaid wages last week. But it also found that he breached his fiduciary duty to TCW and misappropriated his old employer's trade secrets, verdicts that could cost him much more.
While the jury awarded no damages on the breach or intentional interference with contractual relations claims against Gundlach, a judge will fix damages for the trade secrets claim. TCW said it will seek $89 million.
Both sides appraised themselves "very pleased" by the jury's decision after six weeks of testimony, concluding an ugly battle that began when TCW fired Gundlach in December 2009. The firm then sued him, alleging that DoubleLine was "entirely the product of defendant's theft of TCW property, fraud and breach of fiduciary duty." It also claimed to have found a cache of drug paraphernalia and "hardcore" pornographic material in Gundlach's office after he was let go.