A year ago, she made the headlines in a major securities litigation fraud case. This year, she”™s making news in an equally big way in antitrust litigation. The newsmaker is Barbara Hart, chief operating officer and head of the securities litigation practice of White Plains-based Lowey Dannenberg Cohen & Hart. As reported in these pages in December 2012, she as lead counsel and her colleague, attorney Thomas Skelton, recovered in a landmark case $219 million for class-action from so-called “feeder funds” that invested money in Bernard Madoff”™s Ponzi scheme.
Not only did Hart help client Plumbers & Steamfitters Local 267 recover the lion”™s share (70 percent) of the stolen money but virtually 100 percent of it had been paid within one month after federal judge Colleen McMahon awarded the settlement, calling it an “unprecedented global settlement.” She added, “Rarely has there been a more transparent settlement negotiation. It could serve as a prototype for the resolution of securities-related class actions. I have never seen this level of response to a class-action notice of settlement and I do not expect to see anything like it again.”
Continuing on the news-making path, Hart was recently named chair of the New York State Bar Association (NYSBA) antitrust section.
She attributes her success as an antitrust litigator to the mentorship early in her career of noted litigator Bernard Persky, who played a key role in numerous high-profile cases.
Among her numerous antitrust cases, she cites a recent one against a major pharmaceutical company. Her firm represented several union funds including the New York State Teachers Health and Welfare Fund, Local 237 Health & Welfare Fund and Health & Welfare Benefit Fund of Suffolk County to recover money from GlaxoSmithKline for inflated prices on its penicillin antibiotic, Augmentin. Hart”™s firm recovered $29 million for the union funds.
Hart cites mergers as one area that is likely to get special focus, explaining, “Significant-sized mergers like those in the airline and beer industries require antitrust approval by the government and the federal and state courts are hearing increased number of suits relating to mergers.”
She noted from past experience that there will be strong disagreements voiced by members over antitrust issues. “But, the key to our section”™s success is that these disagreements are respectful and productive. I think respectful disagreement is so important and relevant not only in the practice of law but to families, politics and society in general.”
Hart says that respectful disagreement, listening and hearing the validity of others”™ points have been instrumental to her in “achieving the best outcomes for our clients.” It has also played a part as well in the success she had in pushing for reform to both New York Donnelly and Martin Acts governing, respectively, antitrust and financial fraud.
Her efforts in the Donnelly Act, the state”™s primary antirust law, came early in her career when she met with legislators to amend the measure, allowing private parties the right to sue companies or individuals participating in anti-competitive activity. “The change in the Donnelly Act in New York had a ripple effect across the country as 26 other states adopted similar reforms.”
More recently, her efforts as a friend of the court on behalf of state teacher retirement and pension funds against J.P. Morgan Investment Management Inc. resulted in a judgment by the New York State Court of Appeals that the Martin Law did not bar institutional investors the right of legal action when the state”™s securities laws are violated. Previously, the Martin Act, legislation dating to 1921, restricted to the attorney general the right to fight financial fraud.
“Essentially, the court”™s ruling on the relevance of the Martin Act opened the way for investors to pursue claims. But we worked with the attorney general to make this outcome happen. Can you imagine if the AG had to pursue every fraud case?”
And one can only imagine what the future headlines will read like regarding the impact that Hart will make on her clients and the general public as a result of her expertise and collaborative skills ”“ in and out of the courtroom.
Winners Circle is an occasional feature that takes a look at the top women business executives and top attorneys, men and women, in the region. To nominate someone, please contact John Golden at jgolden@westfairinc.com.
