Opening statements were given this week [7-29-11] in L.A. Superior Court in the case of TCW v. Gunlach.
Trust Co. of the West (TCW) sued one of its top performing bond investors, Jeffrey Gundlach for stealing an enormous volume of data that TCW asserts were “trade secrets.” Gunlack and his staff apparently copied the mass of documents and data in anticipation of leaving to form their own competing business. Gunlack and his cohorts then countersued TCW for about $500 million for future management fees it said were owed based on an oral agreement.
Gunlack also claims he was wrongfully terminated. Gunlach was fired in 2009, and you may recall the collapse of the market due to the real estate bubble burst was in 2007-09 and continuing. Gunlack’s great success at TCW was that he somehow managed to invest successfully in mortgage backed securities. [Sorry, I don’t understand how he managed to do what Goldman Sachs and Bear Stearns could not manage to do]. TCW’s assets grew from $9.2 Billion in 2005 to $110 Billion in 2009. With his success, according to TCW attorneys, he grew more arrogant, more insubordinate, and more bitter that he was not made CEO.