BOSTON, MA / ACCESSWIRE / August 14, 2020 / Block & Leviton LLP (www.blockesq.com), a national securities litigation firm, announces that a securities class action has been filed against Eastman Kodak Company (NYSE:KODK) and certain of its executives. Investors who purchased Kodak shares between July 27, 2020 and August 7, 2020 and who lost money are encouraged to contact the firm for a free case evaluation.
On July 27, 2020, Kodak issued a statement to media outlets based in Rochester, New York, 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. On the same day, Kodak granted its CEO and Executive Chairman, Defendant Jim Continenza, 1.75 million stock options at a conversion price of between $3.03 and $12.00 per share, and awarded 45,000 stock options to three other executives.
On July 28, 2020, Kodak's shares soared 200% following news that the Company had won a $765 million government load from the DRC under the Defense Production Act to produce pharmaceutical materials, including ingredients for COVID-19 drugs. Shares continued to surge by over 300% on July 29. These massive increases allowed Company insiders to see massive profits.
On August 1, 2020, a Reuters article reported new details of the "unusual" 1.75 million option grant to Continenza, emphasizing that the 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." On this news, Kodak shares fell 32%. Then on August 4, 2020, U.S. Senator Elizabeth Warren requested that the SEC investigate Kodak for apparent violations of the securities laws and SEC regulations. Then on August 7, 2020, after the market closed, the DFC 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." On this news, the Company's stock price plummeted a further 28%.
The lawsuit was filed in the U.S. District Court for the District of New Jersey and is captioned Tang v. Eastman Kodak Co., et al., No. 3:20-cv-10462. Investors have 60 days from the date the case was filed to move the court to be appointed lead plaintiff.
If you purchased or acquired shares of Kodak and have questions about your legal rights or possess information relevant to this matter, please contact Block & Leviton attorneys at (617) 398-5600, via email at [email protected], or at https://www.blockleviton.com/cases/kodak.
Block & Leviton LLP is a firm dedicated to representing investors and maintaining the integrity of the country's financial markets. The firm represents many of the nation's largest institutional investors as well as individual investors in securities litigation throughout the United States. The firm's lawyers have recovered billions of dollars for its clients.
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SOURCE: Block & Leviton LLP