Kodak announces ‘special committee’ to review recent conduct

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FILE – This Jan. 25, 2011 file photo shows a Kodak slide projector in Philadelphia. Photography company Eastman Kodak is set to receive a $765 million government loan to create a new division that will help make ingredients for use in generic drugs. Kodak Pharmaceuticals will make critical pharmaceutical ingredients that have been identified as essential but have lapsed into chronic national shortage, as defined by the Food and Drug Administration. (AP Photo/Matt Rourke, File)

ROCHESTER, N.Y. (WROC) — Eastman Kodak Company announced an appointment of a special committee that will look into the recent activities surrounding the announcement of a potential loan for Kodak Pharmaceuticals.

Kodak’s depressed stock price surged last week before the company announced its plans to work with President Donald Trump’s administration in exchange for a $765 million loan.  That prompted Sen. Elizabeth Warren to send a Monday letter asking the Securities and Exchange Commission to investigate whether insider trading laws have been broken.

The SEC is now in the early stages of a probe, according to a report published Tuesday by The Wall Street Journal. The newspaper cited unidentified people familiar with the matter.

In a statement released early on Friday, Kodak announced a committee to oversee an internal investigation into the conduct.

“The Committee, comprised of directors Jason New and William G. Parrett, will oversee an internal review of recent activity by the Company and related parties in connection with the announcement of a potential loan by the U.S. International Development Finance Corporation to support the launch of Kodak Pharmaceuticals,” a press release reads.

“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, nonpublic information regarding the forthcoming $765 million loan awarded under the Defense Production Act,” wrote Sen. Warren.

Find Kodak’s full release below:

kodak 8k.pdf by News 8 WROC on Scribd

Check back with News 8 WROC as we will provide updates to this story as they become available.

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