From:Robert Wilson Dej Famu Daniel Banks
September 30, 2006
From:Robert Wilson – Dej Famu – Daniel Banks
Re:Group 4 – Martha Stewart Deliverables
Title & Company: Martha Stewart, CEO - Martha Stewart Living Omnimedia
Martha Stewart Living is a magazine and a television show featuring entertaining and home decorating guru Martha Stewart. Both the magazine and the television program focus on the domestic arts. Martha Stewart Living began as a quartlerly magazine, and is currently published monthly. Martha Stewart Living is also the flagship brand of the Martha Stewart Living Omnimedia media empire.
Martha Stewart Living television debuted as a weekly half-hour syndicated show in September of 1993. Intended to complement the magazine, it featured Stewart as the host. By the time it went on hiatus in autumn of 2004, it was a full hour being broadcast five days a week and on weekends. Martha replaced the show in 2005.
Description of issues:
Martha sold her shares of ImClone when she heard about news that would decrease the values of those stocks through her broker who had heard about it via an inside official at ImClone.
Time-line with facts:
December 26, 2001: ImClone founder Sam Waksal is tipped that the government will deny the company's Erbitux application, then tips his daughter to sell her ImClone stock and tries to sell his own.
The call from Peter Bacanovic to Martha Stewart came in between 10 and 11 a.m. on Dec. 27 to Stewart's assistant who noted, "Peter Bacanovic thinks ImClone is going to start trading downward."
Martha Stewart calls Peter Bacanovic's office later that day and according to prosecutors, she talks to Douglas Faneuil.
December 27, 2001: Stewart sells all 3,928 shares of ImClone stock she owns. The government later contends she was tipped that Waksal was trying to sell his shares.
In 2002, the Securities and Exchange Commission announced that Martha Stewart was under investigation for insider trading. She had sold 3,928 shares of ImClone Systems in December 2001, just before the Food & Drug Administration announced that it was scuttling ImClone's application to sell a new so-called wonder drug.
March 5, 2004: Martha is put on house arrest.
Martha stewart living
Notes from Instructor:
Stewart was found guilty of obstructing justice and lying to the government in connection with the investigation of her trade in Imclone. She was never charged with insider trading.