New York Attorney General James Asks Kodak CEO To Testify About Alleged Insider Trading
KODAK billboard workers in Times Square, March 2004.
Avalon | Hulton Archives | Getty Images
The New York attorney general on Tuesday asked a court to force the Kodak CEO to testify publicly as part of an investigation into allegations of insider trading.
The petition, filed with the New York County State Supreme Court, says chief executive Jim Continenza bought shares in his company’s stock while Kodak was in non-public talks with the White House over a loan worth hundreds of millions of dollars.
The interim loan, announced as the pandemic took hold, was intended to help Kodak turn to chemical production to meet industry needs.
“As millions of New Yorkers and Americans across this country lost their jobs and waited for unemployment checks, Kodak CEO was using inside information to illegally trade company stock,” the attorney said. General Letitia James in a statement.
“We ask the court to order Mr. Continenza to testify in open court, so that the facts can be exposed before the American people,” the statement added.
More specifically, the Attorney General is focusing on the purchase by Continenza of over 46,000 Kodak shares at the beginning of last summer. In July, trading activity resumed in shares of the company before the public announcement of the loan.
Following the announcement, the stock soared, gaining over 300% in one sitting.
Kodak responded to the attorney general’s petition on Tuesday, saying it had already offered documents.
“Prior to this filing, the company repeatedly offered to make witnesses available and the Attorney General repeatedly refused. It is telling that it has now chosen to publicly seek this order by asking for the very testimony in which it did not. ‘previously had no interest,’ Kodak said in a report.
Kodak added that the purchase of Continenza took place when it was not in possession of material non-public information, and said the purchase was part of a pre-approved commercial agreement that met the standards. of compliance. The company said this information was subsequently verified by an independent investigation.
Kodak stock rose nearly 5.5% on Tuesday. Over the past year, shares have increased 187%.
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