Regulators are reportedly investigating why Kodak announced the loan the day before the official announcement, which sent shares up 25%. The magazine reported that a local television station at Kodak’s home in Rochester, New York, published a media consultation on the upcoming announcement.
In a statement to CNN Business, Kodak said it did not intend to disclose those details until July 28. However, the magazine reported that Kodak did not embargo the television station.
Kodak’s unusual deal with the government and wild stock movements caught the attention of Senator Elizabeth Warren.
“There were several cases of unusual commercial activity prior to the announcement, raising questions about whether one or more individuals may have engaged in domestic trade or unauthorized disclosure of material, non-public information about an upcoming $ 765 million loan granted under the Defense Proceedings Act.” , she wrote in an open letter to the SEC on Tuesday.
Kodak claims that the timing of the options was accidental, which took place on the day of the meeting of the compensation committee on board – July 27.
“Mr Continenza has bought shares in almost every eligible window available since joining the company,” Kodak said. “He hasn’t sold a single share during his time at Kodak.”
In response to Warren’s letter, Kodak said he intended to “cooperate fully in any potential investigations.”