RM LAW, P.C. announces that a class action lawsuit has been filed on behalf of all persons or entities that purchased Eastman Kodak Company ("Eastman Kodak" or the "Company") (NYSE: KODK) securities during the period from July 27, 2020 through August 7, 2020 inclusive (the “Class Period”).
Eastman Kodak shareholders may, no later than October 13, 2020, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Eastman Kodak and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (844) 291-9299 or to sign up online, click here.
The class action concerns several matters, including the suspicious timing of insider trading activity in connection with Kodak’s July 28, 2020 announcement that it had reached an agreement with the U.S. government to receive a $765 million loan to produce pharmaceutical ingredients.
As news of the deal broke, Kodak, which had been trading under $2 per share, skyrocketed, and within two days, the stock was trading around $60 per share, with 284 million shares changing hands. Just prior to the announcement of the loan, insiders purchased or were granted over 2 million shares of Kodak stock.
More specifically, the day before the deal was announced, the company granted CEO James Continenza options for 1.75 million shares, just under 29% of which vested immediately. As a result of the suspicious timing of the announcement, lawmakers have asked federal regulators to investigate securities transactions made by the company and its executives around the time Kodak learned it could receive the government loan, and the SEC has announced an investigation. On August 7, 2020, the U.S. International Development Finance Corporation said it was holding up the payout of the loan as regulators look into insider trading activity.
On this news, the Company’s stock price declined $4.15, or 28%, from $14.88 per share on August 7, 2020, to $10.73 per share on August 10, 2020.
If you are a member of the class, you may, no later than October 13, 2020, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM LAW, P.C. or other counsel of your choice, to serve as your counsel in this action.