Gundlach Responds to TCW Lawsuit
Plus, a snapshot of the fund industry, and more.
On Wednesday, Jeffrey Gundlach and DoubleLine Capital LP filed a cross-complaint and response to the lawsuit filed about a month ago by Gundlach's former employer TCW. Gundlach was terminated by TCW in early December 2009. In the cross-complaint, Gundlach and DoubleLine colleagues Barbara VanEvery, Cris Santa Ana, and Jeffrey Mayberry allege that TCW terminated Gundlach and his team in order to prevent them from collecting a predetermined percentage of management and performance fees they say they should have received under an early 2007 oral agreement. The cross-complaint argues that anticipated future fees owed under this agreement total at least $600 million and could even surpass $1.25 billion.
A TCW representative issued a statement to the media indicating that Gundlach's representation of his termination is erroneous and that the company would address all of Gundlach and DoubleLine's claims in court.
Courtney Goethals Dobrow does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.