TCW’s Message To Employees: Depart And Face Litigation

According to a report by Bloomberg, TCW Group Inc, Los Angeles based unit of Societe Generale (OTC: SCGLY) has sued its ex investment chief Jeffrey Gundlach and three other ex employees after more than half of TCW’s fixed income professionals joined Gundlach’s new firm. TCW has sought $200 million in damages from Gundlach and others for breach of fiduciary duty, unfair compensation and misappropriation of confidential information.

TCW had fired Gundlach in December when he allegedly threatened to quit and take people with him. Gundlach counters saying that he had heard that his ex employers wanted to fire him to cut costs as he has been paid over $134 million in the last five years. The lawsuit alleges that Gundlach and other associates had secretly downloaded proprietary TCW information that could total 9 million pages if printed. Gundlach has rubbished the allegations.

Gundlach has started Double Line with backing from OakTree Capital Management LP.