NEW YORK, Sept. 26, 2002 (PRIMEZONE) -- The following is being issued by the law firm Wolf Popper LLP:
Wolf Popper LLP, a New York City law firm specializing in securities class actions, received a significant boost to the prosecution of its class action against Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) and Martha Stewart, personally, when it was reported this morning that Douglas Faneuil, the Merrill Lynch brokerage assistant who handled Stewart's sale of Imclone Systems, Inc. common stock on December 27, 2001, would plead guilty to two misdemeanor charges. Faneuil has reportedly told prosecutors, and will admit in his plea agreement, that he informed Stewart prior to her sale of Imclone common stock that the Waksal family was aggressively selling their shares. Stewart had repeatedly denied having inside information about the Waksal family's sales prior to her sale of Imclone common stock and has repeatedly and falsely assured investors in her company that she had a pre-existing agreement to sell her Imclone common stock if the price fell below $60 per share. Faneuil is expected to testify against Stewart in the civil class action being prosecuted by Wolf Popper that there was no pre-existing agreement to sell Imclone shares and that Stewart's statements to investors were materially false.
Once Stewart chose to speak on the subject of her sales of ImClone shares, she had a legal duty to speak the whole truth. Ms. Stewart failed to speak the truth, as has been further revealed by Faneuil's plea agreement. Stewart's misconduct has resulted in a 62% decline in MSO's stock price of $19.01 prior to the class period to its opening price today of $7.26 per share. Wolf Popper estimates that as a result of that stock decline, Stewart may be liable to investors in her company for tens of millions of dollars.
Wolf Popper's pending class action was filed on August 6, 2002 on behalf of investors who purchased MSO common stock during the period June 7, 2002 through August 5, 2002. Weeks after Wolf Popper began the prosecution of that class action other investors filed complaints seeking to expand the class period back to January 8, 2002 through August 5, 2002. Wolf Popper is continuing to investigate that expanded class period.
The federal securities laws created a presumption in favor of the class member with the largest financial loss acting as the lead plaintiff. Any member of the class who desires to be appointed lead plaintiff in the class action must file a motion with the Court no later than October 7, 2002. Wolf Popper urges class members who acquired their MSO common shares between January 8, 2002 and August 5, 2002, and have significant losses, and other persons with information that may be helpful to the prosecution of the action, to contact Wolf Popper at:
Wolf Popper LLP, James A. Harrod, Esq., 845 Third Avenue, New York, NY 10022
Tel.: 212.451.9642, Toll Free: 877.370.7703, Fax: 212.486.2093, Toll Free: 877.370.7704
Email: irrep@wolfpopper.com, website: www.wolfpopper.com
More information on this and other class actions can be found at the Class Action Newsline at www.primezone.com/ca