Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Kodak CEO's options grants did not violate internal policies, says law firm

Stock Markets Sep 16, 2020 02:00AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. A worker cleans a Kodak booth at the Las Vegas Convention Center in preparation for 2019 CES in Las Vegas

(Reuters) - Securities transactions made by Eastman Kodak Co (N:KODK) Chief Executive Officer Jim Continenza around the time the photography equipment maker learned it could receive a $765 million government loan did not violate internal policies, a law firm hired by the company's board said on Tuesday.

However, an investigation found "gaps" in Kodak's insider trading processes where certain individuals were not included on insider lists, Akin Gump Strauss Hauer & Feld LLP said in a report to a special committee of independent directors at Kodak's board. (https://

Kodak's General Counsel was found to be overwhelmed and running on outdated policies, resulting in board members not being fully advised on relevant internal policies regarding options grants, the law firm said.

Last month, the U.S. government put on hold its loan to Kodak to produce pharmaceutical ingredients at its U.S. factories, over concerns about the company granting of options for 1.75 million shares to Continenza and other securities transactions made by executives.

Initial news of the loan had driven shares 1000% higher, generating a windfall for executives, some of whom had received options one day earlier.

U.S. lawmakers have cited "serious concerns" about the transactions and asked the Securities and Exchange Commission to investigate the circumstances surrounding the matter.

"It is clear from the review's findings that we need to take action to strengthen our practices, policies, and procedures," Continenza said on Tuesday. (https://

Akin said Continenza and board member Philippe Katz obtained preclearance to trade from Kodak's General Counsel, who had concluded it was appropriate as the company's loan application process was at a "highly uncertain" stage.

Kodak CEO's options grants did not violate internal policies, says law firm
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (2)
Kaveh Sun
Kaveh Sun Sep 16, 2020 1:48AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Why is it news? They, the ceo lawyer up. What else their lawyer say? If they lawyer up, they did wrong.
Robert Pomerantz
Robert Pomerantz Sep 15, 2020 11:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Does the stock go up or down from this news?
Kaveh Sun
Kaveh Sun Sep 15, 2020 11:04PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Non event. R ur lawyers say u guilty? Unless u live in a commie country, all ur lawyers say u did not violate anything.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email