According to the Complaint, Kodak is a technology company that provides hardware, software, consumables, and services to customers in commercial print, packaging, publishing, manufacturing, and entertainment.
The Complaint alleges Defendants failed to disclose that the Company had granted an individual defendant and several other Company insiders millions of dollars’ worth of stock options, immediately prior to the Company publicly disclosing that it had received a $765 million loan from the DFC to produce drugs to treat COVID-19, which Defendants knew would cause Kodak’s stock to immediately increase in value once the deal was announced. It is further alleged that while in possession of this material non-public information, individual defendant and other Company insiders purchased tens of thousands of the Company’s shares immediately prior to the announcement, again at prices that they knew would increase exponentially once news of the loan became public. As a result of the foregoing, Defendants’ statements about Kodak’s business, operations, and prospects were false and misleading and/or lacked a reasonable basis when made. As a result of this fraudulent scheme, Defendants artificially inflated the Company’s stock price throughout the Class Period and made investment decisions based on material, nonpublic information derived from their positions at Kodak.