By Bruce Mohl
The Wall Street Journal reports that a number of Massachusetts officials, including state Treasurer Timothy Cahill, received campaign contributions from out-of-state law firms in connection with their push for pension fund litigation.
The front-page report says Cahill received $10,000 in $500 donations in 2005 from people associated with Labaton Sucharow LLP, a New York plaintiffs’ law firm. At the time, the firm was vying to become one of several securities litigator for the $40 billion state pension fund, which Cahill chairs. Labaton Sucharow was eventually selected, along with Bernstein Liebhard LLC, another firm where lawyers and their family members donated $5,500 to Cahill. Cahill didn’t talk to the Journal, but the pension fund’s executive director, Michael Travaglini, said he was unaware of the campaign donations and added that they had no impact on the selection process.
But Travaligni is also quoted as saying he doesn’t see the value of hiring litigators to pursue shareholder lawsuits. He said he agreed to do it only because Attorney General Martha Coakley and Cahill, who is currently running for governor as an independent, urged him to in order to spur corporate governance reforms.
Norfolk County Treasurer Joseph A. Connolly received even more money from Labaton Sucharow, according to the Journal. The paper said he received 68 separate donations, of $500 apiece, for a total of $34,000 since late 2005. The Journal said the Norfolk County pension fund has filed 12 lawsuits against companies in connection with sudden stock drops since 2006; 10 of the cases were handled by Labaton Sucharow.

