Kodak admitted that it mishandled the chief executive’s stock grant process before breaking the news of getting a $765 million government loan. The special committee’s report was released today by Kodak to show that the company didn’t violate any law.
- The camera company released a legal review to show that Kodak wasn’t thoroughly informed about the stock options process by the legal counsel before the disclosure of the loan.
- The lawyers of Kodak maintained that the company didn’t breach any regulations of securities, and allegations are under investigation.
- The report from Kodak also stated that the stock transactions carried out by Continenza along with another member of the board, Philippe Katz, shouldn’t be considered insider trading as the application for loan was at an uncertain stage.
The shares of Kodak soared 72% and halted after the committee found no violations to the regulations. In July, the release on government financing boosted Kodak’s share price as much as 2,100% in two days.