Eastman Kodak (NYSE: KODK) soared as much as 84% on Wednesday to $11.44, after it was determined by a special committee that executive trading and option grants in shares of Kodak just prior to a $765 million government loan announcement in July didn’t violate insider trading laws.
Kodak hired the Akim Gump Strauss Hauer & Feld law firm to investigate the matter after it received intense scrutiny from the likes of Senator Elizabeth Warren and others about its handling of announcing that it received a US government loan to be used for the production of pharmaceuticals, one day after it granted stock to its CEO according o Business Insider.
Following the loan announcement Kodak stock soared more than 2,000%, in just 2 days to as much as $58.
The special committee said Kodak executives did not violate insider trading laws because throughout the loan process, Kodak general counsel told executives that the government loan application process was “at a highly uncertain stage.”
On the early release of the loan information by news media prior to official announcement the firm said, “while this early release of information was not in accordance with best practices, it did not violate Reg FD,” the special committee found.
In a statement, Kodak said it would take actions recommended in the report to strengthen its practices, policies, and procedures.
“Kodak is committed to the highest levels of governance and transparency, and it is clear from the review’s findings that we need to take action to strengthen our practices, policies, and procedures,” Kodak said
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