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Federal Prosecutors Widen Probe of Martha Stewart

HeadlineJun 27, 2002

Meanwhile, shares of Martha Stewart’s company plunged almost 25 percent Wednesday to a record low as new questions emerged about her sale of stock in ImClone Systems, the embattled biotech firm. According to the Wall Street Journal, federal prosecutors have widened their probe of the home-decorating diva to include possible obstruction of justice. The question is whether Martha Stewart lied to the FBI about whether she had inside information when she sold nearly 4,000 shares of ImClone a day before the drug maker’s experimental cancer treatment was rejected by the FDA.

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