A US judge has ordered Eastman Kodak CEO Jim Continenza to publicly answer questions and produce documents in an investigation of his purchase of more than 46,000 Kodak shares a few weeks before the company announced it would receive a AUD$1 billion government loan to produce drug ingredients to fight the coronavirus. The loan has since been put on hold.
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| Eastman Kodak CEO Jim Continenza |
Kodak shares soared as much as 1,900% in two days after the inkjet printer and plate company announced it had secured the US$765 million government loan.
New York state judge Barbara Jaffe has also ordered Kodak’s top lawyer, General Counsel Roger Byrd, to answer questions and produce documents in the probe by the New York Attorney General Letitia James.
"Today's order will force Mr. Continenza and Kodak's general counsel to testify in open court, where the facts will be exposed before the American people," said James in a statement. "Corporate executives don't get to play by their own rules, which is why my office will use every tool at its disposal to hold those who violated the law accountable."
James said Kodak's insider trading policy required a prospective insider to seek clearance by email at least a day before trading and then wait for approval — "neither of which occurred."
Continenza is scheduled to testify on Oct 1, while Byrd's testimony is set for Sept 24.
In a statement, Kodak called the ruling “strictly procedural and fully expected.”
“Jim Continenza was pre-cleared to trade by the company’s general counsel. He did nothing wrong. We are confident that the facts and the law are on our side and are fully prepared to present our case in court.”
