Analysis Group Affiliate Edward Rock Testifies for DoubleLine Capital in Successful Corporate Governance Arbitration

February 5, 2025

Analysis Group was retained on behalf of investment firm DoubleLine Capital, its limited partnerships, and its co-founder and CEO Jeffrey Gundlach (DoubleLine), the respondents in a corporate governance arbitration brought by former DoubleLine executives, including two other co-founders. In their arbitration claim, the former executives alleged that the issuance and distribution of new equity shares and an arrangement that caused one DoubleLine entity to pay service fees to another caused improper dilution of their financial interests and represented a breach of fiduciary duty. DoubleLine successfully argued that a waiver added to the limited partnership agreements for two DoubleLine entities upon the formation of several interrelated DoubleLine partnerships protected DoubleLine from conflict-of-interest claims.

An Analysis Group team lead by Managing Principal Gaurav Jetley, Vice Presidents Luxi Wang and Carletta Wong, and Manager Matt Infante supported affiliate Edward Rock of New York University, who submitted expert reports and testified at the JAMS arbitration proceeding, rebutting the claimants’ expert witness. Professor Rock examined the corporate governance structure of the DoubleLine entities in the context of the challenges faced by professional services enterprises.

The arbitration panel agreed with Professor Rock that the conflict-of-interest waiver modified DoubleLine’s fiduciary duty of loyalty and ultimately awarded DoubleLine declaratory relief. Both parties subsequently filed for summary judgment in the Delaware Court of Chancery, which upheld the arbitration panel’s award.