Examines Martha Stewart made in December 2001 sale of ImClone Systems shares, the resulting federal investigation of possible insider trading and Stewart prosecution and conviction. Discusses the impact of advertising on Stewart’s company, Martha Stewart Living Omnimedia, and their personal image, and raises questions about the prosecutor’s discretion. Challenges students to examine the validity of the insider trading charges against Stewart and securities fraud included in … Read more »

Examines Martha Stewart made in December 2001 sale of ImClone Systems shares, the resulting federal investigation of possible insider trading and Stewart prosecution and conviction. Discusses the impact of advertising on Stewart’s company, Martha Stewart Living Omnimedia, and their personal image, and raises questions about the prosecutor’s discretion. Challenges students to consider the validity of the insider trading charges against Stewart and securities fraud charges in the indictment include the appropriate punishment, and whether federal unfair Stewart pointed out for investigation.
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from
Lynn Sharp Paine,
Christopher M. Bruner
Source: Harvard Business School
11 pages.
Publication Date: Nov 10, 2004. Prod #: 305034-PDF-ENG
Martha Stewart (A) HBR case solution