Kodak Leaps to Wall Street
The title of Eastman Kodak, particularly heckled since the announcement of a large government loan supposed to get into the pharmacy, flew Wednesday after a report exonerating the group and its officials from insider trading or violation of internal regulations.
The group’s action, best known for its dandruff, ended the day with a 36% gain to US $ 8.51 on the New York Stock Exchange.
An agency, the DFC, had granted Kodak a loan of $ 765 million at the end of July under a law allowing the federal government to mobilize the private industrial sector for the needs of the country’s security, so that it produced up to ‘25% of the active ingredients required for the preparation of generic drugs in the United States.
The company’s stock had gone from $ 2.62 the day before the official launch to $ 7.94 the same day and up to $ 33.20 the next day, raising suspicions of insider trading.
A law firm commissioned by the Kodak board of directors ruled on Tuesday that granting stock options to CEO Jim Continenza and some officials just before the loan was announced did not violate stock market laws or internal regulations. of the company as these transactions were long anticipated.
It is also not an offense to sell shares by a board member to a charity on the day the stock jumped, according to the firm.
However, he highlights “gaps” in the internal regulations, in particular the fact that certain officials are not included in the list of people who must follow strict rules when it comes to buying or selling shares.
“It is clear from the report’s findings that we need to take action to strengthen our practices, policies and procedures,” Continenza said in a statement.
“Prompt implementation of the recommended actions will be essential as we continue to deploy our long-term strategy and transform our business for the future,” he added.
Doubts were quickly expressed on the ability of Kodak, which has never worked in the pharmaceutical industry, to quickly produce so many active ingredients.
The DFC suspended its loan a few days after granting it. According to Democratic Senator Elizabeth Warren, the agency has also opened an internal investigation into how the loan was decided.
Kodak Leaps to Wall Street - /10