Rigrodsky & Long, PA announces a
WILMINGTON, Del., Aug.14, 2020 (GLOBE NEWSWIRE) – Rigrodsky & Long, PA announces that a complaint has been filed in the United States District Court for the District of New Jersey on behalf of all persons or entities who have purchased the common stock of Eastman Kodak Company (“Kodak” or the “Company “) (NYSE: KODK) between July 27, 2020 and August 7, 2020 inclusive (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).
If you bought Kodak shares during the recourse period or purchased shares before the recourse period and still own Kodak, and would like to discuss this action or have any questions regarding this notice or your rights or interests, please contact Seth D. Rigrodsky or Timothy J. MacFall at Rigrodsky & Long, PA, 300 Delaware Avenue, Suite 1220, Wilmington, DE 19801, by phone at (888) 969-4242, by e-mail at [email protected], or to http://rigrodskylong.com/cases-eastman-kodak-company.
The complaint alleges that throughout the class action period, the defendants made materially false and misleading statements and omitted substantially adverse facts about the business, operations and prospects of the company. Due to defendants’ alleged false and misleading statements, the Company’s shares traded at artificially inflated prices during the Class Period.
According to the complaint, on July 27, 2020, Kodak issued a statement to media based in Rochester, New York, where it is headquartered, about the imminent public announcement of a “new manufacturing initiative” involving US International Development Finance. Corporation (“DFC”) and the response to COVID-19. Following the media release of Kodak’s initial statement on the deal, the company claimed that this information was inadvertently disclosed.
On the same day, to promote a ploy to leverage the use of non-public material information about the deal before its official disclosure, Kodak awarded its CEO and executive chairman, defendant Jim Continenza, $ 1.75 million. stock options at a conversion price between $ 3.03 and $ 12 per share. In addition, the company granted 45,000 stock options each to its chief financial officer, defendant David Bullwinkle, vice president Randy Vandagriff and general counsel Roger Byrd. On the day these options were granted, Kodak’s share price closed at $ 2.62 per share, well below the lowest conversion price, meaning these options were “out of the money.” When they have been assigned. That would immediately change to an astronomical degree the next day.
On July 28, 2020, Kodak’s stock price jumped 200% from $ 2.62 per share on July 27, 2020 to $ 7.94 per share, following the announcement that the company had won a $ 765 million government loan from the US International Development Finance Corporation (“DFC”) under the Defense Production Act (“DPA”) to produce pharmaceutical materials, including ingredients for COVID-19 drugs The shares continued to climb over 300% the next day to close at $ 33.20 per share on July 29, 2020. This massive increase in the share price allowed defendant Continenza and other Kodak insiders to dramatically enrich the compensation plan, as their stock options were now very much “in the money.” On its own, Continenza saw the value of its options drop from zero to $ 50 million in only 48 hours.
On August 5, 2020, several congressional committees sent a joint letter to defendant Continenza requesting documents on the loan, insider trading and stock options for their review of DFC’s decision to grant this. loan to Kodak despite your company’s lack of pharmaceutical experience and the windfall you and other company executives have gained through this loan, ”which raised“ questions that need to be fully explored ”. The committees also sent a document request to the Director General of the DFC the same day, inquiring about the Kodak loan, which the letter said was “an organization which was on the verge of failure in 2012 and which failed. during his previous foray into the pharmaceutical industry. manufacturing.”
Finally, in response to growing public awareness and scrutiny by Congress and regulation of Kodak’s fraudulent scheme, the DFC suspended the deal. On August 7, 2020, after the market closed, the DFC announced, “On July 28, we signed a letter of interest with Eastman Kodak. The recent allegations of wrongdoing raise serious concerns. We will not go any further until these allegations are clarified. “
On this news, Kodak shares fell nearly 28%, closing at $ 10.73 per share on August 10, 2020, on high trading volume.
If you wish to act as the principal applicant, you must move the Court no later than October 13, 2020. A principal plaintiff is a representative party acting on behalf of the other members of the group in the direction of the litigation. Any proposed class member can ask the tribunal to serve as lead complainant through any lawyer they choose, or they can choose to do nothing and remain an absent class member.
Rigrodsky & Long, PA, with offices in Delaware and New York, has raised hundreds of millions of dollars on behalf of investors and made substantial corporate governance reforms in many cases nationwide, including federal securities fraud actions, shareholder class actions and shareholder derivative actions.
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