TCW, doubleline capital reach settlement

WASHINGTION: The Trust Company of the West Group Inc and star bond investor Jeffrey Gundlach's DoubleLine Capital on Thursday said they had settled all claims between them, ending a long-running legal saga.

"We are pleased that an agreement has been reached and that this matter is now behind us. TCW is well positioned to continue the strong momentum and growth it has established over the past two years," TCW spokesman, Peter Viles said by telephone. Jeffrey Gundlach, chief executive of DoubleLine Capital, said, "I've nothing to add to my prior statements about the outcome." "Victory!" was all Gundlach had said in an email in September. Both sides sued each other in one of the most contentious battles ever to grip the multitrillion-dollar bond fund world, after Gundlach was fired from TCW in December 2009 and set up a rival firm, DoubleLine Capital.

In September, a Los Angeles jury ordered TCW to pay Gundlach $66.7 million in wages, to be divided by Gundlach between himself and his co-defendants. Gundlach and his associates sought hundreds of millions of dollars.

TCW prevailed in its claim that the fund manager took trade secrets. TCW is a unit of French bank Societe Generale , which last month rejected speculation that it was considering a sale of the unit and expressed support for TCW chief executive Marc Stern. The terms of the settlement were confidential and the parties said they would not be discussing them. The case is in Superior Court of California, County of Los Angeles is Trust Co of the West v. Jeffrey Gundlach et al, BC429385.