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Wednesday, June 16, 2021

NY lawyer common James calls for Kodak CEO testify on alleged insider buying and selling

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Staff on the KODAK billboard at Occasions Sq., March 2004.

Avalon | Hulton Archive | Getty Photos

The New York Legal professional Common on Tuesday requested a courtroom to power Kodak’s CEO to publicly testify amid an investigation over allegations of insider buying and selling.

The petition, filed with the New York County State Supreme Court, claims that chief govt Jim Continenza purchased shares of his firm’s inventory whereas Kodak was in personal talks with the White Home over a mortgage price a whole lot of thousands and thousands of {dollars}.

The tentative mortgage, introduced because the pandemic took maintain, was supposed to assist Kodak pivot to chemical manufacturing to fulfill trade wants.

“As thousands and thousands of New Yorkers and Individuals throughout this nation misplaced their jobs and have been ready for unemployment checks, Kodak’s CEO was utilizing insider info to illegally commerce firm inventory,” Legal professional Common Letitia James stated in a press release.

“We’re asking the courtroom to order Mr. Continenza to testify in open courtroom, so the information might be uncovered earlier than the American individuals,” the assertion added.

Particularly, the lawyer common is concentrated on Continenza’s buy of more than 46,000 Kodak shares early final summer season. In July, trading activity picked up in shares of the corporate forward of the general public announcement of the mortgage.

Following the announcement, the inventory shot larger, gaining greater than 300% throughout a single session.

Kodak responded to the lawyer common’s petition on Tuesday saying it had beforehand supplied paperwork.

“Previous to this submitting, the Firm repeatedly supplied to make witnesses out there and the Legal professional Common repeatedly declined. It’s telling that she has now chosen to publicly search this order asking for the very testimony during which she beforehand had no curiosity,” Kodak stated in a press release.

Kodak added that Continenza’s buy happened when he was not in possession of fabric personal info, and stated that the acquisition was a part of a pre-approved buying and selling accordance that met compliance requirements. The corporate stated this info was later verified by an impartial investigation.

Kodak’s inventory superior almost 5.5% on Tuesday. During the last yr shares are up 187%.

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