Martha Stewart Investors to get $30m in Trading Scandal Lawsuit

01 June 2007

NEW YORK: US domestic diva Martha Stewart and her Martha Stewart Living Omnimedia exploitation vehicle will pay $30 million (€22.3m; £15.1m) to settle a lawsuit brought by shareholders over the share-trading scandal that landed the media maven behind bars.

Stewart was convicted in 2004 by a Manhattan court of lying to investigators probing the sale of shares in biotech business ImClone Systems. She was sentenced to five months in prison followed by five months' house arrest.

Investors accused Omnimedia executives of misleading them by making false statements about the federal investigation.

They also contended that the scandal cost them money because of its disastrous effect on MSLO stock values.

Stewart has been ordered to pay $5m of the total settlement from her own (beautifully tailored) pocket.

Omnimedia was zip-lipped about the deal.

Data sourced from New York Times/Reuters; additional content by WARC staff