BOSTON, MA / ACCESSWIRE / September 23, 2020 / Thornton Law Firm alerts investors that a shareholder class action lawsuit has been filed on behalf of shareholders of Eastman Kodak Company (NYSE:KODK). Investors who purchased KODK securities between July 27, 2020, and August 7, 2020, that are interested in learning about the case or being a lead plaintiff are encouraged to visit www.tenlaw.com/cases/KODAK. Investors may also contact Thornton Law Firm at [email protected], or call 617-531-3917.
FOR MORE INFORMATION, VISIT: www.tenlaw.com/cases/KODAK
It is alleged that on July 27, 2020, Kodak issued a statement to media outlets 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. It is also alleged that on the same day, July 27, 2020, to further a scheme to profit from the use of material non-public information about the DFC deal before its official disclosure, Kodak granted its CEO and Executive Chairman, defendant Jim Continenza, 1.75 million stock options at a conversion price of between $3.03 and $12 per share. The Complaint also alleges that Kodak also awarded 45,000 stock options each to its CFO and two other executives. According to the Complaint, on the day these options were awarded, Kodak's stock price closed at $2.62 per share, well below the lowest conversion price, meaning these options were "out of the money" when they were awarded.
The Complaint alleges that on the following day, July 28, 2020, the price of Kodak's shares jumped 200% following news that Kodak had won a $765 million government loan from the DFC under the Defense Production Act to produce pharmaceutical materials, including ingredients for COVID-19 drugs. It is alleged that shares continued to surge by over 300% the next day to close at $33.20 per share on July 29, 2020.
FOR MORE INFORMATION, visit: www.tenlaw.com/cases/KODAK
The Complaint also alleges that on August 1, 2020, a Reuters article reported new details of the "unusual" 1.75 million option grant to defendant Continenza. According to the Complaint, the article emphasized that the options award "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." Allegedly, upon this news, Kodak's stock price fell approximately 32%.
The Complaint goes on to allege that on August 4, 2020, an article published on CQ Roll Call reported that U.S. Senator Elizabeth Warren submitted a letter to the SEC requesting an investigation of the deal and Kodak for apparent violations of the securities laws and SEC regulations. Also that day, according to an article published in The Wall Street Journal, the SEC commenced an investigation into "how Kodak controlled disclosure of the loan, word of which began to emerge on July 27, 2020."
The Complaint also alleges that after response to increasing public awareness and Congressional and regulatory scrutiny of Kodak's fraudulent scheme, the DFC paused the deal and on August 7, 2020, announced that, "[o]n 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." According to the Complaint, on this news, Kodak's stock price declined nearly 28%.
Investors who suffered a loss in Eastman Kodak Company that are interested to learn more about the lead plaintiff process are encouraged to contact the Thornton Law Firm's shareholder rights team at www.tenlaw.com/cases/KODAK, by email at [email protected], or calling 617-531-3917. The lawsuit alleges violations of the federal securities laws, and the class has not yet been certified. Until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member. There is no minimum number of shares required to be a class member, and shareholders do not need to be lead plaintiff to recover as a class member. The lead plaintiff serves as a representative of all investors in the lawsuit. Interested KODK shareholders have until October 13, 2020, to apply to be a lead plaintiff.
FOR MORE INFORMATION: www.tenlaw.com/cases/KODAK
Thornton Law Firm's securities attorneys are highly experienced in representing investors in recovering damages caused by violations of the securities laws. Its attorneys have established track records litigating securities cases in courts throughout the country and recovering losses on behalf of shareholders. This may be considered Attorney Advertising in some jurisdictions. Prior results do not guarantee or predict a similar outcome with respect to any future matter.
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www.tenlaw.com/cases/KODAK
SOURCE: Thornton Law Firm LLP