Acct 4620: Martha Stewart Case Martha Stewart Living Omnimedia is primarily comprised of a magazine publication and a television show created by home décor aficionado‚ Martha Stewart. Both sources of media primarily feature home renovating and decorating products. Also‚ having an emphasis on do it yourself (DIY) projects for a more stylish and satisfying home. Stewart herself‚ described Martha Stewart Living as‚ “the most trusted guide to stylish living.” While MSLO brings in revenues from
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Abstract This case analysis offers facts and opinions about Martha Stewart committing insider trading. It will examine how Martha knew about ImClone stock dropping and how she uethically spiraled out control. Severel articles will be used to support how Martha was sentenced and This study notes that the light sentence for insider trading that resulted in a nearly 37% gain for Martha Stewart Living Omnimedia‚ Inc. also may have been responsible for a small but significant average loss for industry
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by individuals close to the upper level management of an organization. This type of unethical behavior undermines the stability of the organization. In the ImClone scandal where Martha Stewart was indicted for her involement‚ the stability of her company suffered and the companies and people associated with Ms. Stewart suffered as a result of her decision. In this essay I will examine the parties that were privileged to knowing ImClone’s stock was going to drop and those who did not know. I will
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Martha Steward Living Omnimedia Inc. Case Discussion Questions 1. Provide a concise company profile. (I.e.‚ what does your client do to stay in business? What industry is your client in?) Martha Stewart Living Omnimedia‚ Inc. creates original how-to content and related products for homemakers and other consumers. The Company markets its brand name across a broad range of media and retail outlets. Martha Stewart provides information on a variety of subjects including home‚ cooking and entertaining
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no. 1-0083 Martha Stewart and the ImClone Scandal On January 20‚ 2004‚ jury selection launched the trial of Martha Stewart‚ Chief Creative Officer and former Chief Executive Officer and Chairman of the Board of Martha Stewart Living Omnimedia (MSO). Nine charges filed by the Federal Grand Jury in New York and the SEC relate to Stewart’s personal sale of $228‚000 in ImClone Systems‚ Inc. stock on December 27‚ 2001‚ one day before regulators rejected the biotech company’s cancer drug (Erbitux)
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On December 27 ‚ 2001 Martha Stewart‚ America’s beloved housewife‚ sold her shares of ImClone after she received specific inside information regarding the status of the companies business. A series of events led to an investigation‚ interviews‚ indictments‚ a trial & sentencing of Martha Stewart to 5 months in a minimum security prison camp and then 5 months of home confinement. Merril Lynch tipped off the Securities & Exchange commission to report the possibility of insider trading on
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INTRODUCTION Martha Stewart a known celebrity and founder of Martha Stewart Living Omnimedia (a business which is built on showing others how to cost effectively manage and decorate the home)‚ who was given a tip by Douglas Fanueil and Mr. Bacanovic‚ employees of the Merrill Lynch brokerage company. This tip which broke the confidentiality policy of the brokerage company led to the subsequent sale of Martha’s shares in the ImClone company during the latter company’s blackout period with the effects
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Lessons Learned from Martha Stewart’s Insider Trading Crisis Shuhui Sophy Cheng Assistant Professor Department of Communication Arts Chaoyang University of Technology 168 Jifeng E. Rd. Wufeng District Taichung 41349‚ Taiwan Abstract Martha Stewart places her name on her products. She becomes the face of her company and the voice of her brand. When her personal misconduct occurred‚ she made her company vulnerable and risky as well. This case study examines how Martha Stewart managed her corporate
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Case 5-Martha Stewart: A Brand in Crisis 1. Stewart repeatedly denied any wrongdoing‚ despite the conviction and failed appeal‚ yet she still says she did nothing wrong. Is this the right strategy? Yes‚ admit your mistakes‚ learn from them and move on but don’t continue to make them over and over again. Stewart demoed that she engaged in any improper trading when she sold her shares of ImClone stock (Ferrell‚ Fraedrich‚ & Ferrell‚ 2007‚ page 345).Stewart claimed she had previously
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Decisions Made at Martha Stewart Living Omnimedia Incorporated Shelly L. Wilson MGT 350 Drew Stevens University of Phoenix June 2‚ 2004 Decisions Made at Martha Stewart Living Omnimedia Incorporated Critical thinking is a very important part of any business. In order for successful decisions to be made‚ a thorough analysis of options is vital. While some decisions can be more important than others‚ all decisions in business should be considered with critical thinking skills in mind. A recent
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