© 2021 Innovation Trail
background_fid.png
Kodak, the 131-year-old photography pioneer, filed for bankruptcy on January 19th 2012.Eastman Kodak announced early this morning that filing for Chapter 11 bankruptcy was “the right thing to do for the future” of the company.In a statement, Kodak CEO Antonio Perez said company leadership decided the move was “a necessary step.”Innovation Trail has followed the story over the course of 2012.

Lawsuit brought by Kodak shareholders fails

stockshocks.png
stockshocks
/

A shareholder class action lawsuit brought by investors who purchased stock in Eastman Kodak during 2011 was dismissed by U.S. District Judge Harold Baer yesterday.

The case had been mounted by a group of shareholders who claimed that the Kodak's share price had been artificially inflated following statements by the company's CEO, CFO and COO, and that this was in violation of the 1934 Securities Exchange Act.

Kodak filed for bankruptcy on January 19th, 2012 and the case was brought against the current Kodak CEO Antonio Perez and three former executives because of the company's Chapter 11 status. The suit says in part:

During the Class Period, Perez was responsible for the issuance of false and misleading statements about Kodak and failed to disclose the true and material facts about the Company’s digital transformation, liquidity, financial condition and prospects and bankruptcy considerations.

Reuters reports that Judge Baer ruled that there was no evidence that the executives deliberately misled investors about the company's plans for transformation or its financial situation.

Kodak's share prices during the period covered by the lawsuit fell from approximately $4 to 30 cents.

Related Content