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TCW Files Suit Against Former CIO Gundlach

The wake of Gundlach's dismissal from TCW turned rockier Thursday.

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The wake of TCW's dismissal of Jeffrey Gundlach turned rockier Thursday, with TCW filing a lawsuit against its former CIO and his new firm, DoubleLine, alleging breach of fiduciary duty, unfair competition, and misappropriation of trade secrets, among other complaints.

Specifically, the suit alleges that "Gundlach, with other TCW fiduciaries, secretly organized DoubleLine back in October 2009 and laid the groundwork for its launch ... [which] included theft of vast quantities of TCW proprietary information including detailed information about TCW's clients." The complaint also asserts that "Gundlach lied to TCW's clients in an attempt to incite them to abandon TCW," telling them that "TCW had sacrificed investors' interests to further TCW's own financial interests."

Jason Stipp does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.