New York Attorney General Letitia James has threatened to sue photography company Eastman Kodak and its CEO over alleged insider trading, the company revealed Monday.
The expected lawsuit focuses on a stock purchase made by the company’s top executive, Jim Continenza, ahead of a since-derailed $765 million deal with the US government to produce drug ingredients, Kodak said in its quarterly earnings report.
The disclosure from Kodak, which was listed under commitments and contingencies, said the alleged violations were in connection with Continenza’s purchase of 46,737 shares of Kodak stock on June 23.
About a month later, Kodak and the Trump administration announced a deal that would give the ailing camera company a shot at a $765 million loan under the Defense Production Act to support the production of drug ingredients critical to fighting the pandemic.
The expected lawsuit will specifically look at over 46,000 stocks bought by Jim Continenza last June 23.Mario Tama/Getty Images
The announcement sent shares of the company soaring from just over $2 per share to a peak of $60.
But the stock price had already begun to move a day before after Kodak prematurely announced the deal to news outlets in the company’s hometown