SAN FRANCISCO, Sept. 28, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges Eastman Kodak Company (NYSE: KODK) investors with losses in excess of $500,000 to submit your losses now.
Eastman Kodak Company (KODK) Securities Class Action:
The complaint alleges Defendants perpetrated a scheme to profit by misleading investors about a purported deal Kodak reached with the U.S. International Development Finance Corporation (DFC).
Specifically, on July 27, 2020, Kodak issued a statement to media outlets about the imminent public announcement of a “new manufacturing initiative” involving the DFC and the response to COVID-19. Following publication, the Company claimed this information was released inadvertently.
That same day, Kodak granted several insiders options to purchase approximately 1.885 million shares of Kodak, including Executive Chairman and CEO Jim Continenza and CFO David E. Bullwinkle.
On July 28, 2020, the price of Kodak’s shares jumped 200% following news the Company secured a $765 million government loan from the DFC to produce pharmaceutical materials. Shares continued to surge by over 300% the next day. This massive stock price increase allowed Kodak insiders to profit.
Thereafter, media outlets uncovered Defendants’ compensation scheme. As a result of these revelations, Congress, the Office of Inspector General, and the SEC are reportedly investigating, the DFC paused the deal, and Kodak’s share price has declined sharply thereby damaging Class Period investors.
Recently, Kodak’s Board released a report authored by Kodak’s attorneys – Akin Gump Strauss Hauer & Feld LLP – purportedly absolving the Company’s leadership of securities laws violations. But on Sept. 18, 2020, Congressional Reps. Jim Clyburn, D-S.C., Maxine Waters, D-Calif., and Carolyn Maloney, D-N.Y. reiterated that Congress will continue to “vigorously pursue” their own ongoing investigation of the DFC loan, stating, “Let’s be clear: this report does not represent the findings of any regulator; it is a report generated by a law firm hired by Kodak.” In fact, the lawmakers stated that the Akin Gump report “raises more questions than it answers,” including why the Trump administration would give a loan to the onetime photography giant to set up a pharmaceutical manufacturing arm despite no prior experience in that industry and related “windfalls” by insiders stemming from stock trades executed before the loan was made public.
“We’re focused on investors’ losses and holding Kodak and its insiders accountable for their fraudulent compensation scheme,” said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you are a Kodak investor who lost over $500,000 on Class Period investments, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding Kodak should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email KODK@hbsslaw.com.
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Reed Kathrein, 844-916-0895