Martha Sthe company’s secret financial information.tewart, the heroine of home life, is arrested and charged with the crime of “insider trading” ofstock in Martha Stewart, Inc. In the course of the trial, Martha testifies under oath. When asked if sheever bought or sold stock on the basis of inside information, Martha states: “I have never traded stockusing insider information but Oprah trades all the time using such information. Oprah consults a psychicwho reads the Wall Street Journal and “sees” into the company’s secret financial information. Oprahthen trades stock based on this information.”Nick Nosey is a reporter at the trial. He knows for a fact that Oprah Winfrey would never use insideinformation as the basis of a stock trade- in fact, he knows that Oprah does not own and never hasowned any stock at all. Nonetheless, he captions his daily newspaper column on the Stewart trial withthe phrase “Martha Stewart Accuses Oprah of Insider Trading”. In the article, Nosey merely repeats theheadline and then writes about the lawyer’s summations and a description of Ms. Stewart’s outfit anddemeanor. Nosey wrote that Ms. Stewart seemed nervous and distracted when asked about the stocktransactions that were the basis of her arrest.1. Oprah Winfrey is furious. She consults you, a lawyer who specializes in Defamation lawsuits,about the possibility of suing Martha Stewart and Nick Nosey for defamation. What would youadvise Ms. Winfrey? Be sure to discuss fully and consider any defenses defendants might raise.2. Martha Stewart consults you, a lawyer who specializes in Defamation lawsuits, about thepossibility of suing Nick Nosey for his statement that Ms. Stewart seemed “nervous anddistracted.” Ms. Stewart says this makes it sound as though she were not telling the truth attrial. What would you advise Ms. Stewart? Be sure to discuss fully and consider any defensesthat Nosey could raise.
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