CASES
Eastman Kodak Company
Class Period: Jan 26, 2011 to Sep 23, 2011
Lead Plaintiff Deadline: Apr 10, 2012 + Deadline passed
Summary of Case:
A securities class action has been filed against Eastman Kodak Company ("Kodak" or the "Company") on behalf of all persons who purchased or otherwise acquired Kodak publicly traded securities between January 26, 2011 and September 23, 2011. This case has been filed in the USDC - New York (Southern).
The complaint alleges that during the Class Period, Defendants issued materially false and misleading statements regarding the Company's business and financial results. As a result of Defendants' false statements, Kodak's stock traded at artificially inflated prices during the Class Period, reaching a high of $3.81 per share on January 27, 2011.
On September 23, 2011, Kodak filed a Form 8-K with the SEC, announcing the Company was borrowing $160 million against its credit line for general corporate purposes. On this news, shares of Kodak dropped $0.64, to close at $1.74 per share on September 26, 2011, a decline of nearly 27% on volume of nearly 43 million shares.
According to the complaint, the true facts, which were known by the Defendants but concealed from the investing public during the Class Period, were as follows: (a) Kodak's business model was not working - the Company was unable to leverage its extensive portfolio and scale of products and services in a strategically beneficial manner; (b) Kodak's cash position was much more precarious than Defendants' statements suggested; and (c) based on the foregoing, Defendants lacked a reasonable basis for their positive statements about Kodak's turnaround, revenue growth rates, earnings per share, and the Company's ability to deliver on its long-term growth model.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.