Part I: The Case
Fraud, lying, conspiracy...not terms that any individual generally wants associated with their history, nonetheless with their reputation and personality, especially if that individual happens to be Martha Stewart. Martha Stewart: a name which almost every person who calls themselves an American can recognize. Her name pronounces itself across cookbooks, magazines and even has its own show on Style and The Learning Channel. It now pronounces itself with yet another captivating theme, as part of one of America's major scandals.
Martha Stewart may be America's most famous businesswoman. Considered a "cultural icon" (Byron, 3), she made a name for herself through the fundamentals of home-making. As an expert on home decorating, cooking, gardening, elegant weddings and do-it-yourself crafts, Martha entered the homes of millions of Americans with the 1982 publication of her book Entertaining. Eventually, she turned her book and a small catering business into an empire. By 1999, Martha took her company public on the New York Stock Exchange as Martha Stewart Living Omnimedia. The new company astounded Wall Street with its opening stock rising from $18 to $52, and finally settling at a solid $36. Her once small business, now includes a website, 27 books, two magazines, two TV shows and a partnership with Kmart (Byron, 5-6). However, despite one's wealth, success and fan base, people make mistakes. On December 27, 2001, Martha made one that put her career, her company and her reputation in jeopardy.
Trouble Brewing
The case started with a company called ImClone. ImClone was a hot biotech company in which the owner, Sam Waksal, thought was about to get a lot hotter. With the introduction of a cancer drug called Erbitux, Waksal's company was going to skyrocket or so he thought. The drug had only one stipulation until its success, and that was to pass through the strict eye of the FDA.