This news has been received from:

All trademarks, copyrights, videos, photos and logos are owned by respective news sources. News stories, videos and live streams are from trusted sources.


Shares of Kodak are sharply higher after an independent legal review found that while there were flaws in how Eastman Kodak issued stock option grants to its CEO just before revealing a major development that sent its stock soaring, no illegality was involved.

In late July the U.

S. International Development Finance Corporation signed a letter of intent to potentially give the photography pioneer a $765 million loan to help pay for factory changes needed to make pharmaceutical ingredients in short supply in the U.S.

Shares surged from around $8 to more than $33 each in a day, at one point soaring as high as $60, a price that has not been seen for years at Kodak whose fortunes faded with the arrival of digital photography.

The grants to the companies CEO, as well has a huge donation of company stock by a board member around the same time to an affiliated charity, caught the eye of both shareholders and regulators, as did highly active trading in Kodak shares the day before the announcement.

White house trade advisor Peter Navarro, who played a part in the process, blasted the company.

“Based on what I’m seeing, what happened at Kodak was probably the dumbest decisions made by executives in corporate history,” Navarro said on CNBC.

The DFC put any consideration of a loan on hold until the allegations of insider trading are cleared.

Those investigations are ongoing. The DFC would not comment on Kodak's internal investigation Wednesday.

The review by the law firm Akin Gump Strauss Hauer & Feld, commissioned by a special Kodak board committee, found that Kodak's general counsel failed to warn the company's board that the timing of the grants for Executive Chairman and CEO Jim Continenza could look bad regardless of whether the grants were determined to be legal. Continenza and other senior Kodak executives were awarded the grants the day before the potential loan was announced.

Regarding insider trading allegations, the review determined that Continenza and board member Phillipe Katz properly complied with Kodak's insider trading policies. The approval of the trades was appropriate, it found, because the loan application process was at a highly uncertain stage at that time they were cleared.

Akin Gump Strauss Hauer & Feld also said it did not appear that a donation of 3 million Kodak shares by board member George Karfunkel to an affiliated charity at the same time, and suddenly worth a lot more money, violated federal securities laws.

A special committee formed by Kodak said the company should reconsider the makeup of its board, particularly given the change in what type of entities now own company stock.

Kodak said late Tuesday that it planned to review and implement the committee’s recommended measures and that it continues to assist with all other inquiries on these matters.

“Kodak is committed to the highest levels of governance and transparency, and it is clear from the review’s findings that we need to take action to strengthen our practices, policies, and procedures," Continenza said in a statement.

Shares of Eastman Kodak Co., based in Rochester, New York, jumped about 60% in early trading.

Copyright 2020 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Tags: New York

News Source:

Tags: news associated press associated press new york countries news

Dodgers in rarefied air thanks to their depth and power in the lineup

Next News:

Putnam Finds Gas-Station ‘Skimmer’

A near-relic as companies switch to chip cards

A routine inspection by Putnam County’s Office of Consumer Affairs uncovered a “skimming” device installed by thieves inside a pump at a Brewster gas station to steal credit card numbers. 

It had collected 86 numbers, Michael Budzinski, the director of the agency, told Putnam County legislators on Sept. 10 during a meeting of its Rules Committee.

Robert Firriolo, the legislative counsel, observed that most establishments have already been compelled by credit-card companies to switch to readers for credit cards with electronic chips that prevent skimming, but that the companies extended their deadline to April 2021 for gas stations and automatic teller machines (ATMs). 

“That’s kind of the last bastion of the hackers,” he said. “It probably is not a problem outside those two areas.”

Other News

  • Up To 51% Of All School Employees At Increased Coronavirus Risk, Study Finds
  • Trump Says He Approves TikTok Oracle Deal 'In Concept'
  • City councils triple the legal term of payment to suppliers
  • Report Finds Nearly 350,000 Dead Voters Still on Rolls, Double-Voters Casting Multiple Ballots
  • Epic says Apple ‘cherry picked’ info about Fortnite’s popularity in new filing
  • Djokovic rages as Serbian slams racket against ground in Italian Open two weeks after US Open axe
  • Pew: 77 Percent of Catholic Democrats Support Legal Abortion
  • UK's Labour Ties With Conservatives for First Time Since 2019, YouGov Poll Finds
  • Bank trading floors could be poised for a makeover in the wake of Covid-19
  • Biden is murky on his national mask mandate plan — and so is the law
  • The Truth About Social Security and Immigration
  • Pennsylvania Legal Figures Remember Ruth Bader Ginsburg Following Her Death
  • Grant Ruth Bader Ginsburg her wish
  • Fran Bush Talks Victory in the Lawsuit Against Former Superintendent of Schools Shawn Joseph
  • More Than Half of American Voters Support Breaking up Big Tech Companies, a New Poll Finds
  • US versus the world over snapback option
  • 'Thank you, RBG': Leaders react with sadness, shock to Ruth Bader Ginsburg's death
  • Ruth Bader Ginsburgs Daughter, Jane: 5 Fast Facts
  • Martin D. Ginsburg: Who Was Ruth Bader Ginsburgs Husband?