Tuesday, 28 June 2016
Last updated 32 min ago
Jan 3 2012 | 4:52am ET
The ugly legal battle between TCW Group and its former chief investment officer, who now runs an asset management and hedge fund firm, is over.
TCW and Jeffrey Gundlach's DoubleLine Capital said Thursday that they had settled their varied lawsuits against one another, three months after a Los Angeles jury simultaneously awarded Gundlach $66.7 million in unpaid wages and found that he had misappropriated TCW's trade secrets.
The jury declined to award TCW, which fired Gundlach two years ago, any damages for its claims that Gundlach had breached his contract and intentionally interfered with TCW's business. But a judge was still to rule on possible royalties owed by DoubleLine to TCW.
Terms of the agreement, which DoubleLine said were "confidential," were not disclosed.
TCW fired Gundlach in December 2009, accusing him and others at DoubleLine of conspiring to steal its trade secrets and clients. For good measure, it added that a search of Gundlach's offices following his termination uncovered "hardcore" pornography and drug paraphernalia. Gundlach, who set up DoubleLine just 10 days after his firing with backing from his fellow TCW veterans at Oaktree Capital Management, shot back with a lawsuit of his own, which he won following the six-week trial.