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- Kodak soared on Wednesday after a special committee it hired found that it did not violate any laws related to its announcement that it received a $765 million loan from the US government.
- The report found that Kodak executives did not violate insider trading laws because throughout the loan process, Kodak general counsel told executives that the government loan application process was “at a highly uncertain stage.”
- In a statement, Kodak said it would take actions recommended in the report to strengthen its practices, policies, and procedures.
- Shares of Kodak soared more than 2,000% in July after the camera company announced it won a loan from the government to begin producing pharmaceuticals.
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Eastman Kodak soared as much as 84% on Wednesday after it was determined by a special committee that executive trading and option grants in shares of Kodak just prior to a $765 million government loan announcement in July didn’t violate insider trading laws.
Kodak hired the Akim Gump Strauss Hauer & Feld law firm to investigate the matter after it received intense scrutiny from the likes of Senator Elizabeth Warren and others about its handling of announcing that it received a US government loan to be used for the production of pharmaceuticals,