Omnimedia Board Beats Civil Suit, Even As Martha Stewart Awaits Criminal Charges

  • October 4, 2003
Martha Stewart Living Omnimedia Friday said the Delaware Chancery Court dismissed a derivative suit filed against the company's board of directors, which alleged they breached their fiduciary duties due to events related to Martha Stewart's personal sale of ImClone stock and the directors' response to those events. The Court ruled that three of the complaint's four counts failed to state a cause of action as a matter of law, and that the fourth count should be dismissed for failure to comply with Delaware law governing derivative actions.
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