Allegations of Insider Trading. A Notre Dame case study produced by research assistants Arianne Westby and Mary Moulton under the direction of Professor J. S. O’Rourke, IV. Case Overview. Martha Stewart Key Players Timeline of Events Martha’s Three Investigations Cooperating Witnesses
A Notre Dame case study produced by research assistants Arianne Westby and Mary Moulton under the direction of Professor J. S. O’Rourke, IV
Martha Stewart Living Omnimedia Inc. (MSO)
Bacanovic maintains that Martha Stewart’s ImClone stock sale was based an agreement to sell her shares if the price fell below $60.
Or was the stop-loss made in December?
Martha Under Three Investigations:
Mariana, a friend of Martha, and real-estate agent in Westport, Connecticut. She was on her way to Mexico with Martha, when Martha ordered her broker to sell her ImClone shares.
Bart, a Westport, Connecticut physician and ex-husband of Mariana, invested $134,000 in ImClone Systems, Inc. He sold 10,000 ImClone shares December 28, 2001, just hours before the company announced the regulatory setback.
1. MSO employees and shareholders.
2. Kmart Corporation.
3. MSO branded products customers.
4. MSO competitors.
5. CBS’s “The Early Show” and other media outlets.
6. Corporate America, business leaders and the investing public.
Amount realized from selling ImClone stock on December 27, 2001: $229,002.
Amount Martha would have received if she sold after the news was public: $189,495
Overall savings: $39,507
Being able to continue life as an icon…