Regulators are investigating why Kodak announced the loan the day before the official announcement, which sent shares up 25%. The journal said that a local TV station in Kodak’s home in Rochester, NY, published a media advisory on the upcoming announcement.
Kodak said in a statement to CNN Business that it did not intend to publish this information until July 28. However, the journalist reported that Kodak did not give the TV station an embargo at the time of the announcement.
Kodak’s unusual deal with the government and the savage movements that followed caught Senator Elizabeth Wear’s attention.
“There were several instances of unusual trading activity prior to the announcement, raising questions about whether one or more individuals may have engaged in insider trading or in the unauthorized disclosure of material, unpublished information about the upcoming $ 765 million loan granted under the Defense Production Act.” in an open letter to the SEC on Tuesday.
Kodak claims that the timing of the options coincided, which took place at the Board’s Compensation Committee meeting – July 27.
“Mr Continenza has bought shares in almost every available window where he has been eligible since joining the company,” Kodak said. “He has not sold a single share during his time at Kodak.”
In response to Warren’s letter, Kodak said it intends to “fully cooperate with any investigations.”