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Steven M. Hecht is a securities litigator who also wins jury trials in complex commercial litigation. In 2006, Mr. Hecht was named one of New Jersey's "40 Under 40" by The New Jersey Law Journal for his career achievements and potential to be "among the leaders of the New Jersey bar in the not-so distant future." Additionally, Mr. Hecht was recognized as a 2006 and 2007 Rising Star in New Jersey Super Lawyers magazine.
Mr. Hecht has obtained successful jury verdicts in New York Federal court in securities and contract cases, and played a leading role in defending a $130 million jury trial in Virginia state court on behalf of an Internet telecommunications carrier that resulted in a dismissal by directed verdict at the close of plaintiff’s case, defeating a seller's attempt to enforce an alleged asset purchase agreement. He serves as an arbitrator for the NASD and the New York Stock Exchange, where he has also succeeded in bringing and defending broker-dealer and customer claims. Mr. Hecht is the founder of Lowenstein Sandler's Securities Roundtable, a forum for fund managers, hedge fund advisors and other institutional investors at the leading New York investment firms to discuss regulatory and other legal matters affecting their day-to-day activities as well as their long-term strategies. He represents a broad array of clients, including a "Big-Four" accounting firm and Fortune 500 companies. Prior to joining Lowenstein Sandler, Mr. Hecht was an associate at the New York office of Cleary, Gottlieb, Steen & Hamilton from 1992 to 1997.
Recent Representative Cases
Successful Defense of Selling Stockholder in Sale of Controlling Interest
Mr. Hecht successfully defended the sale of a majority block of stock by Sport Supply Group’s former controlling stockholder to Collegiate Pacific, one of Sport Supply’s competitors. In a landmark decision of the Delaware Chancery Court, reported at Abraham v. Emerson Radio Corp., 901 A.2d 751 (Del. Ch. 2006), Vice Chancellor Strine granted Mr. Hecht’s motion to dismiss a claim by minority shareholders that the majority shareholder owed fiduciary duties to them not to sell its control bloc of shares to a competitor that allegedly looted the company’s assets after the sale.
Successful Emergency Motion To Second Circuit Court of Appeals In Proxy Fight
Mr. Hecht represented a hedge fund attempting to oust the existing board of a public company and replace it with its own nominees. In a major ruling concerning shareholder rights and the preservation of votes obtained in a consent solicitation, reported at 466 F.3d 257 (2d Cir. 2006), the Second Circuit Court of Appeals, in a panel led by Chief Judge Walker, granted Mr. Hecht’s emergency motion to allow same-day delivery of shareholder consents that were otherwise subject to expiration under Delaware law.
Dismissal of Federal Securities Class Action Against Emerson Radio Corp.
Mr. Hecht succeeded in obtaining the dismissal of a securities class action lawsuit against Emerson Radio Corp. in New Jersey federal court. By its December 19, 2005 order, the Court dismissed all claims under Rule 10b-5; Section 20(a) for control person liability; and Section 20A for insider trading. In dismissing the complaint the Court made several critical rulings about “confidential witness” allegations, the group-pleading doctrine and contemporaneous insider trading law in its 41-page opinion.
Successful Defense of Broker-Dealer in Federal Jury Trial
Mr. Hecht obtained a jury verdict in the successful defense of a Hong Kong broker-dealer against claims by its former President for breach of contract and constructive discharge. The former President claimed over $10 million for lost wages, bonus and his equity stake in the company. All claims were denied by the jury following a two-week trial in the U.S. District Court for the Southern District of New York before Judge Motley. See Dagen v. CFC Group Holdings Ltd., et al., 2004 U.S. Dist. LEXIS 6582 (April 13, 2004) (denying plaintiff's motion for judgment as matter of law, new trial, or relief from judgment); 2004 U.S. Dist. LEXIS 6839 (April 21, 2004) (granting in part, denying in part defendants' motion for taxable costs). Mr. Hecht also obtained several favorable pretrial rulings in the case concerning telephonic testimony by foreign witnesses at trial -- see 2003 U.S. Dist. LEXIS 20029 (November 7, 2003) -- and requiring the plaintiff to take the deposition of the principal defendant in Hong Kong as opposed to New York. See 2003 U.S. Dist. LEXIS 13859 (August 7, 2003). Mr. Hecht also secured the dismissal of the plaintiff's appeal from this verdict by the Second Circuit Court of Appeals on June 12, 2007.
Successful Defense of Judgment Debtor Following Four-Week Trial
Mr. Hecht obtained a successful defense verdict following a four-week bench trial that challenged a transaction under the Uniform Fraudulent Transfer Act. The ruling, rendered on October 25, 2005, followed the New Jersey Supreme Court’s prior determination that the trial was needed to decide whether the defendants perpetrated a fraud and “suburban shell game” by apparently transferring an interest in their residence. See SASCO 1997 NI, LLC v. Zudkewich, et al., 166 N.J. 579 (2001). The plaintiff creditor sought several million dollars in damages at trial but was not awarded any sums upon the court’s dismissal of all claims. The Supreme Court’s 2001 opinion commanded special attention in the commercial lending industry for its wide-ranging impact upon the time period by which creditors must investigate potential claims against delinquent debtors, and this ruling thus brought closure to seven years of complex, contentious and high-impact litigation. Mr. Hecht also secured the Appellate Division’s affirmance of the trial court’s ruling. See 2007 WL 1827257 (App. Div. June 27, 2007).
Other Successful Securities Cases
- Mr. Hecht successfully represented a large group of investors bringing claims against a communications network company under Section 10(b) of the Exchange Act and Rule 10b-5 in the Southern District of New York. His successful argument in that case is reported at Liberty Ridge LLC, et al. v. RealTech Systems Corp., et al., 173 F. Supp. 2d 129 (S.D.N.Y. 2001).
- His successful defense before the Second Circuit Court of Appeals of a jury verdict he obtained in an oral contract case before the Eastern District of New York is reported at Marbelite Co. v. National Sign & Signal Co., 2 Fed. Appx. 118 (January 22, 2001).
- He has played a significant role in the Cendant Corporation Securities Litigation on behalf of Ernst & Young LLP, which is among the largest securities fraud cases now pending in the District of New Jersey.
- He has represented numerous public companies, including Emerson Radio, Tonka, ITXC Corp., Barringer Technologies, and Marisa Christina, in connection with a variety of commercial and class action lawsuits, and he has handled derivative action and shareholder rights litigation. He was involved in the First Interstate/Wells Fargo acquisition, on behalf of white knight First Bank, in the then-largest bank takeover case in history. He has defended individual and corporate clients in connection with dozens of subpoenas and investigations by the Securities and Exchange Commission and Commodity Futures Trading Commission. He also handled a substantial internal corporate investigation following whistleblower complaints by employees.
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Steven M. Hecht comments on Hewlett-Packard's decision to include a shareholder resolution in its proxy statement after the SEC declined to issue a requested no-action letter concerning the proxy-access rules.,
Compliance Week, January 30, 2007
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Steven M. Hecht examines suit brought by NASD against Morgan Stanley arising from the brokerage house's alleged failure to produce e-mails in response to investor complaints.,
Reuters, January 30, 2007
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Steven M. Hecht mentioned for his representation of Aurora Loan Services Inc. in a lawsuit against D&M Financial Corp., alleging misrepresentation by mortgage borrowers that resulted in successful award of summary judgment.,
The Daily Deal, October 26, 2006
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Harvard Law School
(J.D., 1992),
cum laude
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Haverford College
(B.A., 1989),
Phi Beta Kappa
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New Jersey
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New York
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1992,
U.S. District Court, District of New Jersey
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1993,
U.S. District Court, Southern District of New York
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1993,
U.S. District Court, Eastern District of New York
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2000,
U.S. Court of Appeals, Second Circuit
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2006,
U.S. Court of Appeals, Third Circuit
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- FINRA (formerly NASD and NYSE Regulation)
- Member, Board of Arbitrators
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