NEW YORK–(BUSINESS WIRE)–#EastmanKodakCompany–Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, announces that a class action lawsuit has been filed in the United States District Court for the District of New Jersey on behalf of investors that purchased Eastman Kodak Company (NYSE: KODK) common stock between July 27, 2020 and August 7, 2020 (the “Class Period”). Investors have until October 13, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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The securities 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.
The complaint, filed on August 13, 2020, alleges that during the Class Period defendants engaged in a scheme to deceive the market and a course of conduct that artificially inflated the prices of Kodak’s securities and operated as a fraud or deceit on Class Period purchasers of Kodak’s securities by failing to disclose to investors that the company’s financial results were materially misleading and misrepresented material information. When defendants’ misrepresentations and fraudulent conduct were disclosed and became apparent to the market, the prices of Kodak’s securities fell precipitously as the prior inflation came out of the Company’s stock price.
If you purchased Kodak common stock during the Class Period and suffered a loss in excess of $150,000, are a long-term stockholder, have information, 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 Melissa Fortunato or Marion Passmore by email at firstname.lastname@example.org, telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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