August 5, 2002
A Martha Stewart Living Omnimedia Inc. stockholder has filed a lawsuit against the homemaker, alleging she damaged the reputation of her company by becoming involved in the recent ImClone Systems insider trading scandal. Conrad Hahn, who filed the lawsuit, seeks unspecified damages for potential loss of revenue because of the plunge in Stewart Living stock. The stock is currently trading at $8.15 a share, down from $20.93 in mid-March.
Stewart, an Imclone investor and friend of ex-CEO Samuel Waksal, sold nearly 4,000 shares in the company the day before the U.S. Food and Drug Administration (FDA) announced that it would not approve the company's cancer drug Erbitux. Waksal was arrested on June 12 on insider trading charges.
