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CNN Live At Daybreak
Martha Stewart Could be Indicted any day Now
Aired June 04, 2003 - 06:15 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little business buzz right now. As we have been reporting, things are getting hotter in Martha Stewart's kitchen.
Let's go live to Susan Lisovicz in New York.
Is it possible that she will be indicted today and arrested?
SUSAN LISOVICZ, CNN FINANCIAL NEWS: Well, there is -- certainly if you read the papers today, Carol, as I'm sure you have, there is a sense that an indictment could come as soon as today, and the company itself said yesterday that it has been told that federal prosecutors are seeking a criminal indictment against the company's namesake and founder.
Her attorney says that Martha Stewart will declare her innocence and proceed to trial, and that she will remain -- contrary to some other reports, that she will remain as CEO of her company.
Martha Stewart did not attend her company shareholder meeting yesterday. After the meeting, company director Arthur Martinez categorically denied reports that Stewart had resigned. This all stems from Stewart's controversial sale, of course, nearly 4,000 ImClone shares a year-and-a-half ago, just a day before some very negative news about the company hit the wires.
Stewart's own employment agreement says the company can fire her in the event of her -- quote -- "conviction of a felony or gross misconduct, which in either case results in material and demonstrable damage to our business or reputation." Whatever the case, we can tell you that the controversy is hurting Stewart's company badly. It lost 15 percent yesterday alone, the stock closing at $9.52 -- Carol.
COSTELLO: And, you know, Susan, you have to wonder, if she is arrested, if they'll do the perp walk with her in handcuffs and the whole bit like they've been doing with other CEOs in trouble.
LISOVICZ: Yes, that is certainly a concern from the Martha Stewart camp, and there are a lot of reporters staked out in a soggy New York City today to see if that will happen.
COSTELLO: Yes, thanks, Susan Lisovicz. We'll get back to you in our next half-hour.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
Aired June 4, 2003 - 06:15 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
CAROL COSTELLO, CNN ANCHOR: Time for a little business buzz right now. As we have been reporting, things are getting hotter in Martha Stewart's kitchen.
Let's go live to Susan Lisovicz in New York.
Is it possible that she will be indicted today and arrested?
SUSAN LISOVICZ, CNN FINANCIAL NEWS: Well, there is -- certainly if you read the papers today, Carol, as I'm sure you have, there is a sense that an indictment could come as soon as today, and the company itself said yesterday that it has been told that federal prosecutors are seeking a criminal indictment against the company's namesake and founder.
Her attorney says that Martha Stewart will declare her innocence and proceed to trial, and that she will remain -- contrary to some other reports, that she will remain as CEO of her company.
Martha Stewart did not attend her company shareholder meeting yesterday. After the meeting, company director Arthur Martinez categorically denied reports that Stewart had resigned. This all stems from Stewart's controversial sale, of course, nearly 4,000 ImClone shares a year-and-a-half ago, just a day before some very negative news about the company hit the wires.
Stewart's own employment agreement says the company can fire her in the event of her -- quote -- "conviction of a felony or gross misconduct, which in either case results in material and demonstrable damage to our business or reputation." Whatever the case, we can tell you that the controversy is hurting Stewart's company badly. It lost 15 percent yesterday alone, the stock closing at $9.52 -- Carol.
COSTELLO: And, you know, Susan, you have to wonder, if she is arrested, if they'll do the perp walk with her in handcuffs and the whole bit like they've been doing with other CEOs in trouble.
LISOVICZ: Yes, that is certainly a concern from the Martha Stewart camp, and there are a lot of reporters staked out in a soggy New York City today to see if that will happen.
COSTELLO: Yes, thanks, Susan Lisovicz. We'll get back to you in our next half-hour.
TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com.
