Martha Stewart in $5 million civil settlement

NEW YORK (CNNMoney.com) -- Martha Stewart Living Omnimedia revealed Wednesday that it will settle a class action lawsuit related to the ImClone insider trading case, and Stewart, the company's founder and namesake, is picking up part of the tab.

Stewart will pay $5 million of the $30 million settlement, the company said in a filing with the Securities and Exchange Commission. The company (Charts) said it will pay $15 million, and the remaining $10 million will be paid by insurers.

In 2001, while Stewart was a director on the board of the New York Stock Exchange, she was accused of selling 4,000 shares of the biotech ImClone (down $0.05 to $31.43, Charts) based on an insider trading tip that its experimental cancer drug Erbitux was floundering.

Sam Waksal, the founder of ImClone and its current chief executive, was convicted and is currently a seven-year sentence. Stewart served less than six months in jail for making false statement, obstruction of justice, and conspiracy.

Six reasons why ImClone is a risky investment

Martha Stewart unshackled