Martha Stewart Living is making headlines as Macy’s Inc. moves forward with the lawsuit against rival retailer J.C. Penney Co. Macy’s filed the lawsuit on Thursday in the Supreme Court of the State of New York. The retail giant claims Penney’s bid to sell products by Martha Stewart Living resulted in a breach of contract held by Macy’s and could potentially cost the company a significant drop in sales. The lawsuit claims J.C. Penney entered into a contract with Martha Stewart Living that would allow them to sell the home products at its stores next February. This agreement represents a breach of contract since Macy’s already has a contract in place that allows them to exclusively sell the Martha Stewart line. Macy’s shares opened today at $38.56 and is trading flat so far. On the other hand, New York-based Martha Stewart Living Omnimedia is trading almost 2% lower to $3.06. For more market updates and analysis of the business world follow us on twitter @FNNOnline.