Martha Stewart was indicted yesterday on charges of conspiracy, obstruction of justice and securities fraud, all linked to a personal stock trade she made in 2001. She pleaded not guilty and pledged to fight the charges. read more
Bacanovic and Waksal were also convicted of federal charges and sentenced to prison terms. Stewart also paid a fine of $30,000. In August 2006, the SEC announced that it had agreed to settle the related civil case against Stewart. read more
Shortly after news of the indictment was made public, Martha Stewart Living Omnimedia shares were trading at $9.56, up 4 cents. In the past year, the stock has sunk as low as $5.26. The investigations have cost the New York-based company millions of dollars in legal fees and driven away advertisers and consumers. read more
On December 27, 2001, media mogul and celebrity homemaker Martha Stewart sold her stake in the biotech company ImClone. Two days later, the company’s stock dropped 16 percent when the Food and Drug Administration said it had rejected the ImClone’s main drug, Erbitux, for cancer treatment. read more