NEW YORK, Aug. 6, 2002 (PRIMEZONE) -- Wolf Popper LLP has filed a securities fraud class action against Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) and Martha Stewart on behalf of purchasers of MSO common stock from June 7, 2002 through August 5, 2002, inclusive. A copy of the complaint is available from the U.S. District Court for the Southern District of New York and on Wolf Popper's website (www.wolfpopper.com).
The plaintiff alleges in the class action that during the Class Period (June 7, 2002 through August 5, 2002) Martha Stewart, both directly and through representatives, speaking for herself and in her capacity as the CEO of MSO, made materially false and misleading statements about the circumstances surrounding her sales of approximately 4000 shares of ImClone Systems, Inc. common stock on December 27, 2001. Those shares were sold immediately prior to ImClone's announcement on December 28, 2001 of an adverse FDA ruling which threw ImClone's common stock into a free-fall. Specifically, Ms. Stewart misrepresented that notwithstanding her close personal relationship with Sam Waksal, the Chairman and CEO of ImClone, her sales of ImClone common share on December 27, 2001 were not based on material non-public information, but rather on a pre-existing agreement with her broker to sell her ImClone shares if they fell below $60 per share. Ms. Stewart's statements were made in an effort to escape legal scrutiny and to assure MSO investors that neither Stewart nor MSO would be embroiled in the burgeoning ImClone insider trading scandal.
Once Stewart chose to speak on the subject of her sales of ImClone shares, she had a legal duty to the public shareholders of MSO to speak the whole truth. Ms. Stewart failed to speak the truth. Rather, it was revealed on August 6, 2002, at the end of the Class Period, that she sold her ImClone common shares only after being informed by her stockbroker on December 27, 2001 of material non-public information that Sam Waksal and members of his family had sold or were seeking to sell large holdings of ImClone common stock, which was causing a significant decline in the trading price of ImClone common shares on December 27, 2001. It was further revealed at the end of the Class Period that Stewart and her broker had concocted the story that the sales were based on a pre-existing agreement in an effort to avoid legal scrutiny of those sales. Contrary to Ms. Stewart's assurances to MSO investors, Ms. Stewart's conduct, both before and during the Class Period, has exposed her to insider trading and obstruction of justice charges, with ruinous consequences to her company.
Wolf Popper LLP has extensive experience representing shareholders in class actions and has successfully recovered billions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation have been repeatedly recognized by the courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations.
Any member of the class who desires to be appointed lead plaintiff in the class action must file a motion with the Court no late than October 7, 2002. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff in this action, you may call or write:
Wolf Popper LLP, Robert C. Finkel, Esq. 845 Third Avenue, New York, NY 10022-6689
Tel.: 212.451.9620, Toll Free: 877.370.7703; Fax: 212.486.2093, Toll Free: 877.370.7704
Email: irrep@wolfpopper.com; website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca