Martha Stewart Living Omnimedia Inc. shares soared by about a third Friday after the company's namesake founder received a lighter-than-expected sentence for lying to federal prosecutors.
Stewart, 62, who parlayed a catering business into a media and merchandising powerhouse, was convicted in March for lying about a suspicious stock trade.
U.S. District Judge Miriam Goldman Cedarbaum sentenced Stewart to five months of prison and two years of probation. She was also fined $30,000. Stewart could have been sentenced to up to 16 months in prison.
"It's very light," said Peter Cohan, a management consultant and company watcher. "It's a vote. People like her and they're happy she won't spend too much time in prison."
Stewart's surrender to authorities was delayed to allow her attorneys to appeal her conviction.
Stewart was convicted of lying to prosecutors related to her 2001 sale of ImClone Systems Inc. stock, which saved her $51,000. But the ensuing debacle wiped off $400 million, or about half, of the market capitalization in the company she founded.
She has since resigned as an officer of the company, but remains its controlling shareholder and founding editorial director.
