The Martha Stewart-ImClone saga

Key dates in the stock sale case involving Stewart and ImClone Systems

The Associated Press

June 3, 2003

Here are some key dates in the scandal surrounding Martha Stewart's sale of her stock in ImClone Systems Inc., a biotechnology company founded by her friend Samuel D. Waksal:

Dec. 27, 2001: Stewart sells nearly 4,000 shares of biotech drug maker ImClone.

Dec. 28: Food and Drug Administration says it will not review ImClone's application for Erbitux, which the company touts as promising cancer drug. Disappointing news sends ImClone's shares plummeting.

June 6, 2002: House Energy and Commerce Committee, which is investigating ImClone trading, says it is probing Stewart's stock sale.

June 12: Waksal is arrested, accused of advising family members to sell their shares before the FDA announcement and of trying to dump his own shares. Stewart denies receiving "improper information" before selling shares.

July 24: Martha Stewart Living Omnimedia Inc. halves its third-quarter earnings forecast, acknowledging Stewart's legal problems are taking a toll on business.

Sept. 10: The House committee asks the Justice Department to begin a criminal investigation into whether Stewart knowingly lied to lawmakers.

Oct. 2: An assistant to Stewart's stockbroker pleads guilty to taking a payoff to keep quiet about an alleged insider stock trade and agrees to testify against Stewart.

Oct. 3: Stewart resigns from the board of the New York Stock Exchange.

Oct. 15: Waksal pleads guilty to six counts including securities fraud, bank fraud conspiracy to obstruct justice, perjury. Admits to tipping his daughter to dump ImClone stock, but does not implicate Stewart.

Oct. 21: News reports say Securities and Exchange Commission will file a civil complaint against Stewart.

Oct. 31: Stewart's media company reports 42 percent drop in third-quarter profits.

March 4, 2003: Company reports first-ever quarterly loss amid fallout from investigation.

June 3: Omnimedia says federal prosecutors are seeking a criminal indictment against Stewart "in the near future."