Martha Stewart Share Issuance Suit Sent Back To State Court

Law360, New York (May 9, 2012, 8:33 PM EDT) -- A federal judge on Wednesday remanded to New York state court a putative class action suit opposing Martha Stewart Living Omnimedia Inc.'s approval of a new share issuance, overriding objections from the company.

Shareholder Helene Hutt sued in April in New York state court, invoking Delaware law, to block a vote on whether Martha Stewart Living can issue 4.5 million new shares, a plan that Hutt claims would dilute the stock and enrich company insiders. Her complaint takes issue with the April 9 proxy statement announcing...
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