Kodak’s stock price went up by about 20% on July 27 and more than 200% during the day the company officially announced the deal. By the end of last week, the company’s share had risen by over 500%, a boon for its executives, some of whom had received options a day before the July 28 announcement.
Sen. Warren raised concerns about the stock purchases of Kodak Executive Chair James Continenza and Board Member Philippe Katz before the deal. Based on SEC filings Continenza acquired around 46,700 additional shares while Katz bought 5,000 shares on June 23.
“The purchase of stock by Mr. Continenza and Mr. Katz while the company was involved in secret negotiations with the government over a lucrative contract raises questions about whether these executives potentially made investment decisions based on material, non-public information, and whether that material, non-public information was potentially derived from their positions as executive chairman and board member respectively,” according to the Massachusetts senator in her letter.
