Everybody's talking about the Martha Stewart criminal case, but The 10b-5 Daily is primarily interested in the effect it will have on the securities class action pending against Martha Stewart Living Omnimedia, Inc. and certain individual defendants in the S.D.N.Y. (The 10b-5 Daily's most recent post about the class action can be found here.)
While some experts believe that the dismissal of the criminal securities fraud claim against Ms. Stewart will make it more difficult to prevail in the class action, lead counsel for the shareholders held a conference call today affirming that they would press ahead.
Quote of note (from the Crain's article on the conference call): "[Lead counsel] said his civil case remains viable because the burden of proof is lower than in the just-completed criminal proceeding. In civil cases, securities fraud can be demonstrated by a 'preponderance of evidence.' In criminal cases, fraud charges must be proven beyond a reasonable doubt."Posted by Lyle Roberts at March 8, 2004 4:41 PM | TrackBack