Defense Expected To Pay $30 Million To Settle Class Action Arising Out Of Martha Stewart Sale Of ImClone Stock In 2001

Nov 12, 2006 | By: Michael J. Hassen

Martha Stewart and Martha Stewart Living Omnimedia Defense Attorneys Report $30 Million to Settle Class Action

Several news reports cite reliable sources that the class action against Martha Stewart Living Omnimedia and Martha Stewart has been settled pending court approval. Several lawsuits were filed apparently claiming that Stewart’s misrepresentations concerning her sale of ImClone stock artificially inflated the stock price of Martha Stewart Living. The separate lawsuits eventually were consolidated. News reports place the total settlement at $30 million, of which Martha Stewart personally will pay about $5 million. Insurers are expected to pay about $10 million, with the company – Martha Stewart Living – picking up the tab for the remaining $15 million.

News reports on the anticipated settlement may be found in an article entitled “Stewart Expected To Pay $5 Million To Settle Suit,” in the Business Section of the November 9, 2006 Los Angeles Times, and in an article entitled “Stewart To Pay $5 Million In Settlement Of ImClone Suit,” in the Business Section of the November 9, 2006 Chicago Tribune.

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