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Gundlach Found Liable in Trade Secret Case, but He Wins Back Pay

BY: KEVIN ROOSE

A bitter trial that rattled the normally quiet world of mutual funds came to an unusual end on Friday, as a jury awarded Jeffrey E. Gundlach, a star bond fund manager, millions of dollars in unpaid compensation even though it found him liable for breaching his fiduciary duty and stealing trade secrets at his former firm, Trust Company of the West.

Jurors took two days to find Mr. Gundlach and three co-defendants liable for taking trade secrets from Trust Company of the West, known as TCW, after he was fired in December 2009. It also found all four liable for breaching their fiduciary duty to TCW and Mr. Gundlach liable for interfering with investor contracts.

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