Although the review found no signs of Kodak breaking the law, it found that the company had misused share options granted to its CEO in the days leading up to the signing of the loan deal.
Shares of Kodak rose about 36% on Wednesday afternoon.
The findings of the investigation were published in a 88-page report Tuesday by law firm Akin Gump Strauss Hauer & Feld, which the commission hired to conduct a study of Kodak stock market events, “before and immediately after” the announcement of a $ 765 million federal loan in July. drug manufacturing – part of efforts to reduce America’s dependence on foreign drug manufacturers.
In the trading days following the announcement, the shares rose by 2.757% with a high trading volume. Kodak CEO Jim Continenza and other Kodak executives came under tight scrutiny for receiving stock options the day before the loan was announced on July 27.
7;s review concluded that insider trading laws had not been violated, noting that Kodak executives had been informed by the General Board that the loan application process was “at a very uncertain stage”.
However, the report found Kodak guilty of early disclosure of the government loan the day before it was officially announced, but not in violation of the law.
Meanwhile, the deal itself has been suspended by the United States International Development Finance Corporation, while the Securities and Exchange Commission is investigating how the government deal and its wild stock originated.
Kodak said on Tuesday that it plans to implement the measures and recommendations detailed in the commission’s report.
“Kodak is committed to the highest levels of governance and transparency, and the review’s findings make it clear that we need to take action to strengthen our practices, policies and procedures,” Kodak said in a statement.