Martha Stewart's Road to Decline

Martha Stewart, an American master of home life, created a media kingdom across print, electronics and the Internet by providing all kinds of home food and ideas. On May 5, a jury in Manhattan, new york, found all four charges established, because she was suspected of lying to investigators in a stock market insider trading case and might face imprisonment.

Imclone's stock fell sharply after the news was announced. Baccano, Stewart's former stockbroker, aged 4 1, was charged with conspiracy, perjury, forgery of documents and obstruction of justice, but the jury found that the crime of forgery of documents was not established. Stewart and Baccano argued that they had reached an agreement to sell the stock when it fell below $60.

However, the federal government thinks this is a fabricated story. The real reason for Stewart's selling stock is that she learned from his agent that the CEO of imclone is preparing to sell his stock and other inside information. The CEO of imclone later admitted that the sale of his shares was based on the decision of the Food and Drug Administration. He was sentenced to seven years in prison for insider trading.

Stewart was not convicted of insider trading, but accused her and her agent, Baccano Vicky, of lying about the transaction and modifying the records to support their stories. The federal government may now force Stewart to leave the board of directors of the company she founded. Stewart resigned as CEO when he was sued, but he remained on the board of directors.

Extended data:

Martha's company has a variety of business projects, such as running magazines, making TV programs and selling various products, such as knives, garlic beaters, pillows and sheets. There is no doubt that this judgment poses a great threat to Stewart's carefully established media kingdom. Marketing experts said that because her company is closely linked to her name, if Stewart leaves, the company's business will be seriously affected.

Retail experts point out that even if Martha Stewart is no longer used as a trademark or company name, its household goods brand may be devastated. Within an hour after the court announced the verdict, Martha Stewart Life Multimedia Company issued a statement.

The company said that it would immediately convene a board meeting to carefully assess the situation and take appropriate actions. The company is confident to continue to be a leading brand. The New York Times pointed out that the actions that the company is considering include renaming its magazine and even the whole company.

Observers believe that it is difficult to continue to use the convicted Martha Stewart as the company brand. Since Ms. Stewart was involved in the lawsuit ten months ago, the competition among peers has become more intense.

A spokesman for wcbs, CBS's main television station, said that the company would withdraw its program "Life in Martha Stewart" from March 8th. After the verdict was announced, the share price of Martha Stewart Life Multimedia Company closed down by 23%.

Baidu Encyclopedia-Martha Stewart