Publications
Publications
- November 2004 (Revised January 2006)
- HBS Case Collection
Martha Stewart (A)
By: Lynn S. Paine and Christopher Bruner
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.
Keywords
Capital Markets; Corporate Governance; Financial Markets; Management Teams; Law; Government and Politics
Citation
Paine, Lynn S., and Christopher Bruner. "Martha Stewart (A)." Harvard Business School Case 305-034, November 2004. (Revised January 2006.)