TCW and ousted exec Gundlach settle lawsuit
Star bond trader Jeffrey Gundlach and his former employer, TCW Group Inc., said they settled a lawsuit over his firing in 2009 and allegations that he stole trade secrets to set up his own firm.
The two sides issued a joint statement but did not release terms of the deal.
FOR THE RECORD:
An earlier version of this article said the settlement pertained to one part of the case. TCW said it covers all claims.
TCW, the Los Angeles-based money management unit of French banking giant Societe Generale, and Gundlach were locked in an often bitter court battle this year. The jury in the case awarded $66.7 million to Gundlach and three other former TCW employees who helped him launch rival firm DoubleLine Capital.
The jury also found Gundlach in breach of fiduciary duty to TCW, but did not award any damages.
Gundlach was fired in a December 2009 shakeup at TCW that rocked the mutual-fund world.
One month later the company sued him, alleging that he and key aides conspired against the firm and stole TCW proprietary information to quickly set up a new fund-management business, DoubleLine Capital.
Gundlach, 51, then countersued and accused TCW of ousting him after 24 years at the firm to cheat him out of a huge chunk of promised income.
A spokesman for TCW said the company was “pleased that an agreement has been reached.” Gundlach declined to comment.
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