NEW YORK--(BUSINESS WIRE)--Labaton Sucharow, a leading investor rights law firm is investigating possible breach of fiduciary duty claims on behalf of Eastman Kodak Company as well as securities litigation claims (“KODAK”) (NYSE: KODK). The investigation arises, in part, from a disclosure made in a Form 4 filed with the Securities and Exchange Committee (the “SEC”) (available at www.sec.gov) that KODAK’s Chief Executive Officer had been granted stock options on Monday, July 27, 2020, immediately prior to the Company publicly disclosing that it had received a $765 million loan from the U.S. Department of Defense to produce drugs to treat COVID-19. The public disclosure of the Company’s receipt of funds from the U.S. Department of Defense caused KODAK’s stock price to rise considerably.
On August 10, 2020, shares of Eastman Kodak Co. KODK, -26.75% plummeted 45% in active premarket trading after reports the U.S. International Development Finance Corp. is withholding its planned $765 million loan after the deal came under regulatory scrutiny. The stock had rocketed 13-fold in two days, after it was announced on July 28 that the IDFC would provide Kodak a the loan to help produce the ingredients to maker generic drugs. Under question how Kodak controlled the disclosure of the loan, as the stock soared 25% in active trading the day before the news was reported, amid active stock option trading. Kodak disclosed on Friday that it appointed a special committee to oversee and internal review of recent activity by the company and related parties in connection with the announcement of the potential government loan. As of Friday’s close of $14.88, the stock had pulled back 55% since July 29.
If you are a current or past shareholder, option or derivative holder of Kodak and wish to learn more or discuss the issues surrounding the investigation, please contact David J. Schwartz using the toll-free number (800) 321-0476 or via email at recover@labaton.com or at dschwartz@labaton.com.
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Labaton Sucharow LLP is one of the world’s leading complex litigation firms representing clients in securities, antitrust, corporate governance and shareholder rights, and consumer cybersecurity and data privacy litigation. Labaton Sucharow has been recognized for its excellence by the courts and peers, and it is consistently ranked in leading industry publications. Offices are located in New York, NY, Wilmington, DE, and Washington, D.C. More information about Labaton Sucharow is available at http://www.labaton.com.