SAN FRANCISCO, Sept. 21, 2020 (GLOBE NEWSWIRE) -- Hagens Berman urges Eastman Kodak Company (NYSE: KODK) investors with losses in excess of $500,000 to submit your losses now. A securities fraud class action has been filed.
Eastman Kodak Company (KODK) Securities Class Action:
The complaint alleges Defendants perpetrated a scheme to profit 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, Kodak issued a statement to Rochester, New York 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 that the Company had won 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, the SEC is reportedly investigating, the DFC paused the deal, and Kodak’s share price has declined sharply thereby damaging Class Period investors.
Most recently, on Sept. 14, 2020, the financial press reported the DFC inspector general is investigating why Kodak was selected for the loan, whether officials involved in it had conflicts of interest, and the impact of Kodak’s lobbying effort.
“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.
About Hagens Berman
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Reed Kathrein, 844-916-0895