Kodak's CEO and corporate counsel interviewed as part of AG probe; transcripts to be released
Eastman Kodak's chief executive and the company's general counsel have been interviewed as part of the state attorney general's investigation into alleged insider trading by the company in its efforts to secure pandemic-related work from the Trump administration.
Originally Kodak Chief Executive Officer James Continenza and counsel Roger Byrd were expected to be interviewed publicly. However, in September, a judicial hearing officer ruled that the testimony did not have to be public.
The testimony from the two will be released publicly, but the Attorney General's Office has indicated in the past that it must first be redacted to ensure private information is not disclosed. There is not yet a date for likely release of the testimony.
Recently filed court papers show that the interviews occurred in October. Kodak also acknowledged the interviews in its regular filing with the Securities and Exchange Commission.
"The Company intends to vigorously defend itself against the threatened (attorney general lawsuit) should it be filed," the company said in its filing.
New York Attorney General Letitia James this year announced that her office was investigating trading connected to the failed deal last year between Kodak and the Trump White House, which considered Kodak as a manufacturer of needed pharmaceuticals during the pandemic. The value of Kodak shares skyrocketed after the announcement of the possible deal in July 2020, then later tanked.
Continenza purchased 46,000 shares of Kodak stock while the company was engaged with discussions with the federal government over the proposed $765 million pact. Those transactions are a partial focus of the investigation by James' office, as well as a separate investigation by the federal Securities and Exchange Commission.
The Trump White House stepped away from the deal after the trading came to light.
An internal investigation, contracted by Kodak, determined that there were judgmental lapses in how the company dealt with stock purchase issues around the time of the proposed deal but no evidence of insider trading.
The investigation determined that one major stock purchase by Continenza came while the loan was uncertain and the summer 2020 stock options granted to him had been discussed well in advance of the loan and were in line with company protocols.
Numerous shareholders have sued Kodak, and the lawsuits have been consolidated into a federal lawsuit in Rochester.
Contact Gary Craig at gcraig@gannett.com or at 585-258-2479. Follow him on Twitter at gcraig1.
This article originally appeared on Rochester Democrat and Chronicle: Kodak's CEO James Continenza interviewed as part of AG probe
