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Case
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Reference no. 9-305-034
Published by: Harvard Business Publishing
Originally published in: 2004
Version: 26 January 2006

Abstract

Explores Martha Stewart's December 2001 sale of ImClone Systems common stock, the ensuing federal investigations into possible insider trading, and Stewart's criminal prosecution and sentencing. Discusses the impact of publicity on Stewart's company, Martha Stewart Living Omnimedia, and on her personal image, and raises issues of prosecutorial discretion. Challenges students to consider the validity of the insider trading charge against Stewart as well as the securities fraud charge included in the indictment, the appropriate sentence, and whether federal authorities unfairly singled out Stewart for investigation.
Location:
Industry:
Size:
USD245.8 million revenues, 544 employees
Other setting(s):
2001-2004

About

Abstract

Explores Martha Stewart's December 2001 sale of ImClone Systems common stock, the ensuing federal investigations into possible insider trading, and Stewart's criminal prosecution and sentencing. Discusses the impact of publicity on Stewart's company, Martha Stewart Living Omnimedia, and on her personal image, and raises issues of prosecutorial discretion. Challenges students to consider the validity of the insider trading charge against Stewart as well as the securities fraud charge included in the indictment, the appropriate sentence, and whether federal authorities unfairly singled out Stewart for investigation.

Settings

Location:
Industry:
Size:
USD245.8 million revenues, 544 employees
Other setting(s):
2001-2004

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