Milberg Weiss Announces The Filing Of A Class Action Suit on Behalf of Purchasers of the Securities of Martha Stewart Living Omnimedia, Inc.
NEW YORK--(BUSINESS WIRE)--Aug. 21, 2002--The law firm of Milberg Weiss Bershad Hynes & Lerach LLP announces that a class action lawsuit was filed on August 20, 2002, on behalf of purchasers of the securities of Martha Stewart Living Omnimedia, Inc. ("MSLO" or the "Company") (NYSE: MSO - News) between January 8, 2002 and July 24, 2002 inclusive (the "Class Period'). A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss' website at: milberg.com ADVERTISEMENT
The action is pending in the United States District Court for the Southern District of New York, located at 500 Pearl Street, New York, New York 10007, and is brought against the Company and the following directors and/or officers of the Company: Martha Stewart ("Stewart," founder, Chairman and CEO), Sharon L. Patrick (President, Chief Operating Officer and director), Dora Braschi Cardinal (Executive Vice President- Print Production), Gael Towey (Executive Vice President and Creative Director), Gregory R. Blatt (Executive Vice President- Business Affairs, Secretary and General Counsel), Lauren Podlach Stanich (Executive Vice President, President, Publishing) Margaret Roach (Executive Vice President, Editor-in-Chief), Suzanne Sobel (Executive Vice President-Advertising Sales), John L. Doerr (director from 7/99 through early 2002). In addition, venture capital firm Kleiner Perkins Caufield & Byers is also named as a defendant. The Honorable John E. Sprizzo is the Judge presiding over this action.
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between January 8, 2002 and July 24, 2002. Among other things, the complaint alleges that Stewart sold 100% of her personally held common stock of ImClone, Inc. ("ImClone") based on insider information obtained from Samuel Waksal ("Waksal"), ImClone's CEO and a personal friend of Stewart's. The complaint further alleges that the insider information allowed Stewart to sell all of her 4,000 shares of ImClone common stock on December 27, 2001, one day before devastatingly-negative news regarding ImClone was publicly disclosed for the first time, sending the price of ImClone common stock plummeting. On January 18, 2002, the complaint charges, the Securities and Exchange Commission, Justice Department and U.S. House Energy and Commerce Committee began investigating whether Waksal had warned certain of his relatives and friends of the negative developments prior to the public disclosure of such developments, allowing them to avoid the massive losses resulting from the subsequent public disclosure. According to the complaint, despite knowing of her illicit insider-sales and the foreseeability that the government's investigations would uncover her wrongdoing and have a materially adverse impact on MSLO's business (which depended in large part on Stewart's reputation and public image), Stewart failed to disclose her activities to the public. Instead, the complaint alleges, Stewart, along with the other defendants, sold a total of $79 million in MSLO common stock, with many defendants selling nearly all of their MSLO common stock. As alleged in the complaint, the public first learned of Stewart's complicity in the high-profile ImClone scandal on June 6, 2002, with the publication of a media report --setting-off a precipitous decline in MSLO's stock price. The impact of Stewart's involvement in the ImClone scandal on MSLO's business was, according to the complaint, not known to the public until July 24, 2002, when the Company announced that the circumstances were negatively impacting its revenues and earnings, causing MSLO to slash earnings estimates for the third quarter of 2002 by half and reducing guidance for the entire-year 2002. On July 24, the price of MSLO common stock dropped to below $7.50 per share -- a 60% drop in one month.
If you bought the securities of MSLO between January 8, 2002 and July 24, 2002 you may, no later than October 7, 2002, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Milberg Weiss Bershad Hynes & Lerach LLP, or other counsel of your choice, to serve as your counsel in this action.
Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com) is a 190-lawyer firm with offices in New York City, San Diego, San Francisco, Los Angeles, Boca Raton, Philadelphia and Seattle, and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others, and has been responsible for more than $20 billion in aggregate recoveries. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:
Steven G. Schulman or Samuel H. Rudman
One Pennsylvania Plaza, 49th fl.
New York, NY, 10119-0165
Phone number: (800) 320-5081
-- or--
William S. Lerach or Darren J. Robbins
401 B Street, Suite 1700
San Diego, CA 92101
Phone number: (800) 449-4900
Email: marthastewartlivingcase@milbergNY.com
Website: milberg.com |
