Kodak shares climb 80% after investigation finds no wrongdoing in government loan
Kodak, in a statement to CNN Business in August, said it had no plans to make those details public until July 28. The stock rose nearly 3,000% in the days following the loan announcement and has since fallen back to earth.
Kodak, the maker of camera equipment, garnered attention – and critics – for the first loan of its kind over the summer. It received a government loan under the Defense Production Act as part of efforts to reduce reliance on foreign drug makers for Covid-19.
The review by law firm Akin Gump Strauss Hauer & Feld concluded that insider trading laws had not been violated, noting that Kodak executives had been told by the attorney general that the process loan application was “at a very uncertain stage”.
“Kodak is committed to the highest levels of governance and transparency, and it is clear from the findings of the review that we need to take action to strengthen our practices, policies and procedures,” Kodak said in a previous statement. .
Kodak was trading around $ 33 per share after the July announcement, but fell to $ 7.53 per share at Friday’s close.