Martha Stewart: An Accusation Of Insider Trading

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The following summary has been created to provide you with critical information in your meeting with Martha Stewart. All of the following information has been sourced from the article "Martha Stewart Living Omnimedia, Inc.: An Accusation of Insider Trading" produced by the University of Notre Dame's Center for Business Communication.

Martha Stewart: Business Powerhouse and Diva of Domesticity

Martha Stewart is a business superstart in every sense of the word. Her first experience with trading was at Perlberg, Monness, Williams and Sidel after she completed her brokerage courses at New York Institute of Finance in 1968. After becoming one of the top sales professionals in the business, she started her first business, named "An Uncatered Affair" …show more content…
Samuel Waksal founded ImClone, a company dedicated to creating new drugs to treat diseases in the field of oncology. In 2001, Dr. Waksal's brother, Harlan, took over as Chief Executive Officer. Around this same time, ImClone is dealing with a serious issue regarding their drug "Erbitux". On December 4th, 2001, an ImClone employee, Lily Lee, met with the FDA. In that meeting it was discovered that it was "99% likely" that Erbitux would not be approved. After this meeting she wrote an internal memo alerting the company to this. Two days after this meeting, Harlan Waksal sold his $50 Million worth of shares, stating that the board knew about his choice to sell week prior. Samuel, the former CEO and Harlan's brother, had a more difficult time unloading his shares. Knowing that news of the dissaproval would go public on December 28th, Sam transfered thousands of shares to his Daughter in an attempt to sell them all on December 27th. Due to the fact that, regardless of where he funneled his shares, he was unable to sell without board approval, Sam made a decision to forge the signiture of ImClone's general councel. This later led to bank fraud.

Without Using a Pot, Martha Finds Herself in Hot …show more content…
The stock price of her own company (Martha Stewart Omnimedia) fell to an all time low of $13.60 (it has recovered a bit now) and losses in her magazine sales have been approximated at $200 Million. Additionally, due to her selling shares of her own company before the scandle with ImClone became public, she has been sued by shareholders of the organization. With her stock prices increasing, and at least one investigation coming to an end, Martha is primarily interested in seeing the end of the remainder of investigations (those being done by the U.S Department of Justice and the Securities and Exchange Commission) and putting this whole affair behind
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