April 24, 2012 (Shareholders Foundation) -- An investor in NYSE:MSO shares filed a lawsuit against directors of Martha Stewart Living Omnimedia, Inc. in effort to stop a proposed increase in the number of shares in a stock option plan.
According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties and have acted to potential put their personal interests ahead of NYSE:MSO stockholders.

Martha Stewart Living Omnimedia’ board of directors, among other things, recommended in the proxy statement that investors at the May 23 2012 annual meeting approve a proposed amendment to its omnibus stock and option compensation option plan that would increase the number of shares reserved for issuance.

The plaintiff claims that NYSE:MSO stockholders will suffer irreparable damage and therefore the vote must be stopped because the company submitted misleading and incomplete information.

Martha Stewart Living Omnimedia, Inc. reported that its annual Revenue fell from $284.31million in 2008 to $221.43million in 2011 and its Net Loss increased from $9.60million in 2010 to $15.52million in 2011.

Shares of Martha Stewart Living Omnimedia, Inc. (NYSE:MSO) increased in 2009 from as low as $1.73 in March 2009 to $8.06 per share in September 2009. However, during 2010 and 2011 NYSE:MSO shares overall lost value and traded in late 2011 as low as $2.77 per share.
In the Decmeber 2011 NYSE:MSO shares jumped from $2.90 per share to $4.86 per share after J.C. Penny bought a 16.6% stake in Martha Stewart Living Omnimedia, Inc. for $38.5million. Since then NYSE:MSO shares held value throughout the first two months in 2011 but began to lose value in March and closed on April 18, 2012 at $3.48 per share.