KODK) stock witnessed a relatively flat day of trading on Monday with a 0.66% downward movement and closing at $5.98 at the end of trading hours. However, in the extended trading hours, the stock price briefly peaked at $8.70.
class-action lawsuit against the company for securities fraud. A day after the news broke, the company filed a Form 13G with the SEC disclosing that a prominent hedge fund company has purchased a stake in Kodak.” data-reactid=”20″>What Happened: On Aug 30, there were reports of a class-action lawsuit against the company for securities fraud. A day after the news broke, the company filed a Form 13G with the SEC disclosing that a prominent hedge fund company has purchased a stake in Kodak.
According to the SEC filing on Aug 31, Delaware hedge fund D.E. Shaw & Co bought over 3.94 million shares in Eastman Kodak, representing a 5.2% stake in the company.
The lawsuit was filed after the company reportedly granted stock options to the Executive Chairman and company insiders before material information about the 5 million loan was disseminated. The EC and the insiders also purchased additional shares immediately before the news release was made public.
On a year-till-date basis, Kodak stock has gained close to 48%.
In July, Kodak was granted a loan by the United States administration to produce pharmaceutical ingredients domestically. But later on, the grant was put on hold and the sanction fell under government scrutiny after allegations of insider trading.
Kodak stock traded 31.4% higher at $7.86 per share in the after-market trading session on Monday.
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