While the review found no signs of Kodak’s violation of the law, it found that the company mismanaged the stock options granted to its CEO in the days leading up to the signing of the loan agreement.
Kodak shares were up about 36% on Wednesday afternoon.
The investigation findings were released Tuesday in an 88-page report by law firm Akin Gump Strauss Hauer & Feld, which the committee hired to conduct an investigation into Kodak’s stock events “before and immediately after” the announcement of 765 million dollars in July. federal loan to manufacture pharmaceutical ingredients – part of an effort to reduce America’s dependence on foreign drug makers.
In the trading days following the announcement, the shares were up 2.757% with high trading volume. Kodak CEO Jim Continenza and other Kodak executives were examined for receiving stock options the day before the July 27 loan announcement.
7;s review concluded that the insider trading laws were not violated, noting that Kodak executives were informed by the legal counsel that the loan application process was “at a highly uncertain stage”.
However, the report found Kodak at fault for disclosing the government loan early one day before it was officially announced, but not in violation of the laws.
Meanwhile, the deal itself has been suspended by the US International Development Finance Corporation while the Securities and Exchange Commission investigates how the deal with the government ended and its wild run.
Kodak said Tuesday it plans to implement the measures and recommendations detailed in the commission’s report.
“Kodak is committed to the highest levels of governance and transparency and it is clear from the audit findings that we need to take action to strengthen our practices, policies and procedures,” Kodak said in a statement.