ImClone Systems

no. 1-0083 Martha Stewart and the ImClone Scandal On January 20, 2004, jury selection launched the trial of Martha Stewart, Chief Creative Officer and former Chief Executive Officer and Chairman of the Board of Martha Stewart Living Omnimedia (MSO). Nine charges filed by the Federal Grand Jury in New York and the SEC relate to Stewart’s personal sale of $228,000 in ImClone Systems, Inc. stock on December 27, 2001, one day before regulators rejected the biotech company’s cancer drug (Erbitux)

ETH 501 Module 1 Case Assignment The Martha Stewart insider trading case was a high profile case filled with uncertainty. In order to say whether or not Stewart handled her indictment responsibly, it is necessary to start with an assumption regarding her guilt or innocence. For the purposes of this paper, based on the information I have read about the case, and based on the fact that she was found guilty of all counts (although not all specifications) in her stock conspiracy trial (with the

Fortune. In 2002, her reputation of being a successful businesswoman took a plunge when rumors leaked regarding her involvement of insider trading of ImClone stocks. She took part in selling her ImClone stock after hearing news of the rejection of their new cancer drug. After being convicted, the affect of this scandal took a toll on both Martha and ImClone. After serving her sentence, Martha began to reconstruct her life in hopes to bounce back from the insider trading scandal. Today she has managed

Abstract Insider trading mostly occurs by individuals close to the upper level management of an organization. This type of unethical behavior undermines the stability of the organization. In the ImClone scandal where Martha Stewart was indicted for her involement, the stability of her company suffered and the companies and people associated with Ms. Stewart suffered as a result of her decision. In this essay I will examine the parties that were privileged to knowing ImClone’s stock was going to

shows Martha Stewart Living Omnimedia was becoming a very successful company. Martha Stewart Living Omnimedia will also be referred to as MSLO. Background of Scandal In 2001, Martha Stewart was accused of illegal insider trading with the stock of ImClone

Mgmt 3600 – Theories of Management Name: Nyonohseyonyon Wreh Case Study: The Trial of Martha Stewart Central Issue: Were Martha Stewart, Faneuil, and Peter Bacanovic actions of disclosing clients confidential information and lying to the SEC proven to be ethical? Recommended Course of Action: I recommend that Martha Stewart, Faneuil, and Peter Bacanovic revisit Merrill Lynch Ethical Policy. That way they can better understand

Dear Ms. Stewart, I am writing to address some concerns I have about the future of your company, Martha Stewart Omnimedia (MSO). Perhaps the one issue that you are grappling with at present is about the Imclone scandal. You have been accused of selling $227,000 worth of Imclone stock based on inside information. Because of these charges of insider trading, your critics have summarily associated you with other disgraced company directors: Kenneth Lay of Enron and Bernard Ebbers of WorldCom

The investigation traced all the way back to Stewart’s earliest involvements with ImClone. It discovered that Stewart and Samuel Waksal, a co-founder and former CEO of ImClone, had become friendly in the early 1990s (Carlin 2003). ImClone is a biopharmaceutical company that specializes in the development of treatments for cancer. They are incorporated with their headquarters in New York City, and are publicly

Stewart instead has the spotlight on her for crimes of insider trading. A tip from her former broker Peter E. Bacanovic, persuaded her into selling her IMClone stock after sharing information about a close friend of Stewart’s getting rid of his shares. Stewart’s companion, Sam Waksal, was also the chief executive of IMClone Systems Inc. IMClone Systems is a well-known company specializing in the research and development of therapies treatments of cancer. The stock selling was provoked due to a leak

STATEMENT OF PURPOSE ‘The known is finite, the unknown infinite; intellectually we stand on an islet in the midst of an illimitable ocean of inexplicability. Our business in every generation is to reclaim a little more land’, these are the lines aptly said by Mr. Thomas H. Huxley. The unyielding quest for boundless knowledge has been my motivating and driving force throughout my career pursuit. It’s the same quest that prompted me for higher studies. The dedication