The multi-million dollar lawsuit that Trust Company of the West brought against former star portfolio manager Jeffrey Gundlach, who TCW fired in 2009 but who then formed his own, competing firm, DoubleLine Capital, was settled last Thursday out of court.
The two firms would not disclose terms of the settlement, although the lawsuit, which accused Gundlach and his associates of stealing trade secrets, was in the hundreds of millions of dollars.
Gundlach countersued for a similar sum, claiming he was not properly compensated. The trial took place over the summer and ended up with the jury finding Gundlach and three of his associates guilty of violating trade secrets -- but they, nonetheless, awarded them $66.7 million in damages.
“We are pleased that an agreement has been reached and that this matter is now behind us,” Peter Viles, a spokesman for TCW, told Reuters. “TCW is well positioned to continue the strong momentum and growth it has established over the past two years.”
Lee Barney writes for Money Management Executive.