TCW accuses Gundlach of 'wholesale theft'

Asset manager sues its ex-investment chief again, this time for allegedly misappropriating trade secrets
JAN 14, 2011
A trust created by DoubleLine Capital LP's Jeffrey Gundlach was sued by TCW Group Inc., which already sued its former investment chief after he brought more than half of its fixed-income professionals to his new firm. DoubleLine Funds Trust was started to market DoubleLine Capital's mutual funds and to “generate fees and profit for Gundlach and the money management firm he had formed,” TCW said in a new complaint filed yesterday in state court in Los Angeles. TCW provided a copy of the complaint to Bloomberg News. TCW, a Los Angeles-based money management firm, accuses the trust and its trustees of misappropriation of trade secrets and unfair competition, among other allegations, and seeks unspecified damages. “Jeffrey Gundlach and his co-conspirators built a business based on the wholesale theft of huge amounts of TCW's proprietary data and analytical systems, and that business includes DoubleLine Funds Trust,” Steve Madison, a lawyer for TCW, said yesterday in an e-mailed statement. “When DoubleLine Funds was launched last spring, TCW notified the funds and their trustees of TCW's intent to name the trust as a defendant.” TCW, a unit of Societe Generale, in January accused Gundlach and several former employees who joined DoubleLine of breach of fiduciary duty, unfair competition and misappropriation of confidential information and demanded more than $200 million in damages. “TCW has made false claims against DoubleLine for 11 months,” Lew Phelps, a spokesman for DoubleLine, said today. “Their case is going not at all well. This latest legal action by TCW is redundant and meaningless.”

Latest News

Supreme Court strengthens SEC power to claw back fraud profits from violators
Supreme Court strengthens SEC power to claw back fraud profits from violators

No investor losses? The SEC can still claw back every dollar of pro

Wirehouse moves: RBC nabs experienced Wells Fargo advisor in New England
Wirehouse moves: RBC nabs experienced Wells Fargo advisor in New England

Plus, Well Fargo hails May recruitment haul totaling more than $3 billion in assets, while UBS recruits a top advisor and women's champion from Lazard.

Robinhood Concierge for millionaire investors nears 60,000 clients
Robinhood Concierge for millionaire investors nears 60,000 clients

Robinhood’s invite-only Concierge unit now serves about 60,000 affluent customers with CFP access, tax planning, and estate planning resources as the retail brokerage expands further into wealth management.

Advisor360, Willow Wealth tap seasoned veterans for C-suite roles
Advisor360, Willow Wealth tap seasoned veterans for C-suite roles

The two wealthtech platforms name new C-level executives as AI-native strategy and private markets growth accelerate across the advice industry

Western Asset agrees to $100M SEC penalty over cherry-picking scheme
Western Asset agrees to $100M SEC penalty over cherry-picking scheme

Franklin Resources' fixed-income unit settles SEC charges and closes firm-level DOJ and regulatory probes, but Kenneth Leech's criminal case continues.

SPONSORED Estate planning isn't a service add-on. It's your retention strategy.

As $84 trillion prepares to change hands, advisors who treat estate planning as peripheral are quietly building a sieve, not a book.

SPONSORED Why strategy matters more than performance

In volatile markets, the advisors who win aren't the ones with the best calls - they're the ones whose clients stay the course.