Schubert Jonckheer & Kolbe LLP is investigating potential legal claims against Eastman Kodak Co. (NYSE: KODK) and certain of its officers and directors on behalf of shareholders.
The firm's investigation relates to potential incidents of insider trading prior to the July 28, 2020 announcement of the Trump administration's $765 million loan to the company under the Defense Production Act to support the production of generic drug ingredients to combat COVID-19. Several incidents of unusual trading activity prior to announcement of the deal raise questions about whether Kodak's officers and directors may have engaged in insider trading or in the unauthorized disclosure of material, nonpublic information.
Kodak's chairman and other members of the board of directors purchased substantial amounts of company stock last month, ahead of the public announcement and at a time when the company and the Trump administration were negotiating the deal in secret. Filings with Securities and Exchange Commission show that on June 23, 2020, Kodak's executive chairman James Continenza purchased approximately 46,700 shares and board member Philippe Katz purchased 5,000 shares. On July 27, several Kodak executives received stock-option grants. When the loan was publicly announced on July 28, the company's officers and directors who purchased stock prior to the announcement earned an extraordinary return. These stock purchases and grants made while the company was in secret negotiations regarding a lucrative contract raise questions about whether Kodak's executives made investment decisions based on material, non-public information derived from their positions.
News reports also indicate that news sources in Rochester, New York, the location of the company's headquarters, shared information about the loan on July 27, the day prior to the official announcement. Reports indicate that Kodak failed to indicate to news outlets that the announcement was embargoed until July 28. Kodak's failure to make a full disclosure upon the inadvertent disclosure may also violate federal securities laws. On August 4, 2020, the SEC launched an investigation concerning the circumstances around Kodak's announcement of the government's loan.
The Schubert Firm is investigating legal claims based on potential insider trading and the company's announcement of the government loan. If you wish to obtain additional information about shareholder claims and your legal rights, please contact Willem Jonckheer via email at email@example.com or by telephone at (415) 788-0634, or fill out the form on our website at www.classactionlawyers.com/kodak.
About Schubert Jonckheer & Kolbe
Schubert Jonckheer & Kolbe has extensive experience in prosecuting securities claims and has successfully represented investors throughout the nation in shareholder lawsuits.
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SOURCE Schubert Jonckheer & Kolbe LLP