Most Talked-About Controversies Linked to Martha Stewart

A closer look at the most debated and controversial moments involving Martha Stewart.

Martha Stewart is an American businesswoman, writer, and television personality known for founding Martha Stewart Living Omnimedia. Her company focused on home and hospitality and achieved success through publishing, broadcasting, merchandising, and e-commerce. She authored bestselling books, published Martha Stewart Living magazine, and hosted syndicated television programs like Martha Stewart Living and The Martha Stewart Show, building a significant brand around her lifestyle expertise.

Sections (5)

Full Timeline Early Life & Education Career & Achievements Challenges & Struggles Controversies & Scandals

December 27, 2001: Sale of ImClone Systems Stock

According to the SEC, on December 27, 2001, Martha Stewart avoided a loss of $45,673 by selling all 3,928 shares of her ImClone Systems stock after receiving nonpublic information from her broker. The stock value fell 16% the following day.

June 25, 2002: Grilled on The Early Show about ImClone

On June 25, 2002, CBS anchor Jane Clayson grilled Martha Stewart on the air about ImClone during her regular segment on The Early Show. Stewart responded by focusing on her salad.

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October 3, 2002: Resignation from the New York Stock Exchange Board

On October 3, 2002, Martha Stewart resigned from her position on the board of directors of the New York Stock Exchange, following a deal prosecutors had made with Douglas Faneuil.

June 4, 2003: Indictment by Grand Jury

On June 4, 2003, Martha Stewart was indicted by a grand jury on nine counts, including charges of obstruction of justice. Following this, she stepped down as CEO and Chairwoman of MSLO.

January 2004: Trial Begins

In January 2004, Martha Stewart's trial began. Prosecutors presented evidence that Peter Bacanovic had ordered his assistant to inform Stewart that the CEO of ImClone, Samuel D. Waksal, was selling his shares in advance of an FDA ruling.

March 2004: Guilty Verdict in Trial

In March 2004, after a six-week jury trial, Martha Stewart was found guilty of felony charges of conspiracy to obstruct, obstruction of an agency proceeding, and making false statements to federal investigators.

July 2004: Sentencing to Prison and Supervised Release

In July 2004, Martha Stewart was sentenced to serve a five-month term in a federal correctional facility and a two-year period of supervised release, including five months of electronic monitoring.

October 8, 2004: Reports to Prison

On October 8, 2004, Martha Stewart reported to FPC Alderson to begin her prison sentence.

2004: Confinement in Federal Prison Camp

In 2004, Martha Stewart was confined in Federal Prison Camp in Alderson, West Virginia. Her lawyer cited the remoteness making it difficult for her 90-year-old mother to visit.

2004: Dismissal of Derivative Suit

In 2004, a derivative suit brought by Monica Beam, a shareholder of MSLO, against Martha Stewart and other directors and officers of the company, was ultimately dismissed by the Supreme Court of Delaware.

March 2005: Release from Federal Prison

In March 2005, Martha Stewart was released from federal prison after serving five months for felony charges related to the ImClone stock trading case.

August 2006: Settlement with the SEC

In August 2006, the SEC announced that it had agreed to settle the civil case against Martha Stewart. She agreed to disgorge $58,062 and pay a civil penalty of $137,019. She was also banned for five years from serving as a director, CEO, CFO, or any officer role responsible for financial disclosures of any public company.

June 2008: Visa Denied to the United Kingdom

In June 2008, the UK Border Agency refused to grant Martha Stewart a visa to enter the United Kingdom because of her criminal conviction. She had planned to speak at the Royal Academy on fashion and leisure industry matters.

May 2018: Considered for Presidential Pardon

In May 2018, Martha Stewart was considered as a candidate for a presidential pardon, but was ultimately not selected and later claimed she would have turned it down.

September 2022: Lawsuit Filed Against CBD Line

In September 2022, Oregon-based CBD producer Wyld filed a lawsuit against Martha Stewart's company for copyright infringement relating to the packaging of her line of CBD gummy supplements.