The Washington Post reports today that a federal grand jury has indicted Martha Stewart and her broker on conspiracy, obstruction of justice, and false statement charges stemming from a federal investigation of alleged insider trading in ImClone Systems stock. Meanwhile, the securities class action against Ms. Stewart and her company, Martha Stewart Living Omnimedia, Inc., continues.
Quote of note: “Disgruntled shareholders have alleged in class-action lawsuits that Stewart violated securities laws by failing to disclose she was under investigation when she sold 3 million shares in a prearranged sale to a company run by another board member on Jan. 8, 2002.”
The 10b-5 Daily 