BALA CYNWYD, Pa., Aug. 21, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all purchasers of the common stock of Martha Stewart Living Omnimedia, Inc. ("MSLO" or the "Company") (NYSE:MSO) between January 8, 2002 and July 24, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The suit is being 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 complaint charges Martha Stewart Living Omnimedia, Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, 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.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which prosecutes class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than October 7, 2002, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca