Kodak Reportedly Under SEC Investigation After Its Share Price Explodes Over 2,757%

0
33


Last week’s surprise announcement sent Kodak shares soaring – up to 2,757% – and sparked significant trading volume for the largely forgotten company. Questions have also arisen about the leaders, including Jim Continenza, Kodak (KODK) Executive Chairman and Chief Executive Officer, receiving stock options on July 27, one day before the loan announcement.

Regulators are said to be investigating why Kodak announced the loan the day before the official announcement, which raised shares by 25%. The Journal said a local television station from Kodak’s home in Rochester, New York, issued a media advisory of the upcoming announcement.

Kodak, in a statement to CNN Business, said it has no plans to make those details public until July 28. However, the Journal reported that Kodak did not give the TV station an embargo on the ad.

The Journal noted that the investigation is at an early stage and may not produce allegations of wrongdoing by the company or any individual. The SEC did not immediately respond to a request for comment.

Kodak’s unusual deal with the government and the ensuing wild stock movements caught the attention of Senator Elizabeth Warren.

In response to Warren’s letter, Kodak said it intended to “cooperate fully with any potential investigation.”

LEAVE A REPLY

Please enter your comment!
Please enter your name here