Shares in US tycoon Martha Stewart's lifestyle business empire plummeted after she was found guilty on charges stemming from a suspicious stock trade.
Martha Stewart Living Omnimedia shares plunged $US3.17 or 22.59% to finish at $US10.86 on Friday.
The stock had surged by up to 20% as investors wrongly gambled on a not-guilty verdict before the New York Stock Exchange temporarily suspended trading on the issue to forestall volatility while the decision was announced in court.
Stewart was convicted on charges of conspiracy, obstruction of justice and two counts of making false statements to federal investigators.
The 62-year-old business tycoon, who stepped down from the company bearing her name after being charged, faces a maximum five year jail term and a fine of $US250,000 on each count.
"We are deeply saddened by the news of Martha Stewart's conviction, and our thoughts are with her in this difficult time," the company she founded said in a statement.
"In spite of this disappointment, it is important to recognise the significant contributions that Martha has made to advancing the domestic arts and improving the quality of life in and around our homes."
The board said it would meet "promptly" to evaluate the new situation and decide on action.
"In the meantime, we are confident that our assets - our senior management team, our talented employees, our quality brand labels, our omni business model and infrastructure, and our financial
strength reflecting $US169 million cash in the bank and no debt - are more than sufficient to continue MSO's development as a leading `how to' brand building company," it said.
"In addition, we would like to thank our employees and our partners for their commitment and support over this difficult period."
wow this is sad i was watching People in the News and i just heard that the vaccine or whatever that was not approved when her stocks fell through.....well i just heard that the medicine was approved last month or something.
I knew that was going to happen. I commented on a part of justice being that it would actually go through, and the ones who bought the stock that got dumped would be laughing all the way to the bank. Now that is justice. If I bought stock through legal means, and found out later the people who sold me the stock had inside information and that's why they dumped it, I would be furious.
Justice is served for those who bought the stock, but I still feel bad for Martha. I can't imagine an active person suddenly having too much time on their hands.
Yeah, It definitely was not worth it. She could have just paid 45,000 and nobody would have known about it. Even if it did leak it would not have been anything big like how it is now. It’s just another example of celebrity stupidity. I think she got what she disserves Lying only makes things worse. I even know that and I’m in High School. She is a grown woman for crying out loud.
03-05-2004 11:45 PM
Lying only makes things worse. I even know that and I’m in High School. She is a grown woman for crying out loud.
