TCW accuses Gundlach of 'wholesale theft'

Asset manager sues its ex-investment chief again, this time for allegedly misappropriating trade secrets
JAN 14, 2011
By  Mark Bruno
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

Advisor moves: RBC nabs $500M Merrill team as LPL recruits $350M Osaic advisor
Advisor moves: RBC nabs $500M Merrill team as LPL recruits $350M Osaic advisor

The Merrill Lynch defectors expand RBC's reach in Texas while LPL bolsters its New York presence.

Fed's Waller in favor of rate cutting if tariffs drive job losses
Fed's Waller in favor of rate cutting if tariffs drive job losses

Separately, Cleveland Fed President Beth Hammack said the central bank could make a move by June if data show a clear economic trajectory.

Kestra adds $2.4B in Q1 recruitment assets
Kestra adds $2.4B in Q1 recruitment assets

After onboarding 26 new advisors in the first three months of 2025, the independent wealth platform is looking forward to continued momentum in Q2.

Jury finds Massachusetts advisor liable for annuity disclosure shortfalls
Jury finds Massachusetts advisor liable for annuity disclosure shortfalls

The SEC hailed the verdict against the investment advisor, who the agency said breached his fiduciary duty to retired and pre-retiree clients.

Broker or bookie? Robinhood's mix of betting, investing concerns advisors
Broker or bookie? Robinhood's mix of betting, investing concerns advisors

As Robinhood bets on prediction markets, advisors are skeptical of the app's push into the RIA custody and wealth management services.

SPONSORED Compliance in real time: Technology's expanding role in RIA oversight

RIAs face rising regulatory pressure in 2025. Forward-looking firms are responding with embedded technology, not more paperwork.

SPONSORED Advisory firms confront crossroads amid historic wealth transfer

As inheritances are set to reshape client portfolios and next-gen heirs demand digital-first experiences, firms are retooling their wealth tech stacks and succession models in real time.