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...have been listening. Cedarbaum gave her the most lenient sentence possible under federal guidelines--five months in a minimum-security federal prison and five months of house arrest. Was Stewart surprised? "Not at all," she said defiantly as she left the courtroom. But Wall Street was impressed, sending the stock surging 37%, closing at $11.81, on news of the light sentence...
...conviction and remains free on bail until the appeal is exhausted, the likelihood that she will play only a peripheral role in the company means that it must now figure out how to move forward without its most important product. Stewart owns about 61% of the company's stock, and its business is indelibly marked with her name. While brand experts have criticized the new CEO, Sharon Patrick, for moving too slowly to separate the company from the convicted felon, the seeds of that transformation are already in place...
They begin with Patrick, a longtime confidant of Stewart's. A former McKinsey consultant, she helped Stewart craft a multimedia lifestyle conglomerate out of her cookbooks, television specials and endorsement deals. Patrick stood by her side when Stewart rang the opening bell at the New York Stock Exchange on Oct. 19, 1999, the day the company went public. At its peak, the stock reached nearly $40 a share, but it has dipped close to $5 since news of Stewart's sale of ImClone, a biotech-company stock, surfaced in June 2002. That sale triggered a federal investigation and her subsequent...
Doctors often caution their patients not to put too much stock in the results of a single medical study. After all, researchers are human, too, and can make mistakes. But when five different clinical trials published over three years concluded that lower cholesterol levels would better protect folks at greatest risk of heart attack, the evidence seemed too strong to ignore. That's why the experts at the National Cholesterol Education Program (NCEP) decided to change their guidelines--setting aggressive new targets that will take some getting used...
SENTENCED. MARTHA STEWART, queen of domestic advice and former ImClone shareholder; to five months in prison for lying to federal investigators over her sale of the company's stock; in New York City (see page...