New York Attorney General Letitia James on Tuesday asked a state court to order Eastman Kodak and its CEO James Continenza to provide evidence and testimony in advance of a planned insider-trading lawsuit against them.
The company and Continenza both violated New York securities law when he bought 46,737 shares of the company’s stock on June 23, James’ office alleged in court filings.
The company warned investors last month that James had threatened to sue over the matter.
Continenza’s stock purchases came about a month before Kodak and the Trump administration announced a deal that gave 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 COVID-19 pandemic.
The announcement sent shares of the company soaring from just over $2 per share to a peak of $60, which raised eyebrows about Continenza’s stock purchase at an average price of $2.22 per share a month earlier. Ultimately, the feds halted the deal as regulators looked into suspicious trading activity.
James on Tuesday asked a court to order Continenza and Kodak General Counsel Roger Byrd to publicly testify and provide documents related to Continenza’s