SAN FRANCISCO, Aug. 25, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges Eastman Kodak Company (NYSE: KODK) investors with losses in excess of $250,000 to submit your losses now. A securities fraud class action has been filed and certain investors may have valuable claims.
Eastman Kodak Company (KODK) Securities Class Action:
The complaint alleges that Defendants perpetrated a scheme to profit from the use of material non-public information by misrepresenting and concealing material facts regarding a purported deal Kodak reached with the U.S. International Development Finance Corporation (DFC).
Specifically, on July 27, 2020, Defendants caused Kodak to issue a statement to media outlets based in Rochester, New York, where Kodak is headquartered, on the imminent public announcement of a “new manufacturing initiative” involving the DFC and the response to COVID-19. Following media publication of Kodak’s initial statement on the deal, the Company claimed this information was released inadvertently.
That same day, Kodak granted several insiders options to purchase approximately 1.885 million shares of the Company’s common shares, including Executive Chairman and CEO Jim Continenza, who received options to purchase 1.75 million shares, and CFO David E. Bullwinkle, who received options to purchase 45,000 shares.
On July 28, 2020, the price of Kodak’s shares jumped 200% following news that the Company had won a $765 million government loan from the DFC to produce pharmaceutical materials, including ingredients for COVID-19 drugs. Shares continued to surge by over 300% the next day. This massive stock price increase allowed Kodak insiders to enrich themselves from the compensation scheme.
In days following the deal announcement, media outlets uncovered Defendants’ compensation scheme. As a result of these revelations, the SEC is reportedly investigating, the DFC paused the deal, and Kodak’s share price has declined sharply thereby damaging Class Period investors.
“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 $250,000 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