LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation on behalf of Eastman Kodak Company ("Kodak" or the "Company") (NYSE: KODK) investors concerning the Company’s possible violations of federal securities laws.
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On July 27, 2020, Kodak issued a statement to media outlets based in Rochester, New York, where it is headquartered, on the imminent public announcement of a “new manufacturing initiative” involving the U.S. International Development Finance Corporation (“DFC”) and the response to COVID-19. Following media publication of Kodak’s initial statement about the deal, the Company claimed this information was released inadvertently.
On July 28, 2020, media reported that Company had won a $765 million government loan from the DFC under the Defense Production Act (“DPA”) to produce pharmaceutical materials, including ingredients for COVID-19 drugs.
On August 1, 2020, Reuters reported new details of an “unusual” 1.75 million option grant to Kodak’s Chief Executive Officer, Jim Continenza, which “occurred because of an understanding” between Continenza and Kodak’s Board of Directors “that had previously neither been listed in his employment contract nor made public.”
On this news, Kodak’s shares fell $6.91 per share, or 32%, to close at $14.94 per share on August 3, 2020, thereby injuring investors.
Over the next several days, several articles reported the Congressional and regulatory scrutiny regarding the option grants and the DFC loan.
On August 7, 2020, after the market closed, the DFC announced, “On July 28, we signed a Letter of Interest with Eastman Kodak. Recent allegations of wrongdoing raise serious concerns. We will not proceed any further unless these allegations are cleared.”
On this news, the Company’s stock price declined $4.15, or 28%, to close at $10.73 per share on August 10, 2020, thereby injuring investors further.
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If you purchased Kodak securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to info@frankcruzlaw.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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