Eastman Kodak Company (PINK:EKDKQ) Employee Files Lawsuit Against Directors Over Stock Investments

If you are a former or current employee or member of any of Eastman Kodak Company’s investment plans or profit sharing retirement plans, such as the Kodak Employees’ Savings and Investment Plan and/or the Kodak Employee Stock Ownership Plan since between Jan. 1, 2010 and January 19, 2012, that purchased or held Eastman Kodak Company (PINK:EKDKQ) shares, you have certain options and you should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Eastman Kodak
Case Name: 
Eastman Kodak ERISA Action 02/03/2012
Case Status: 
Lawsuit Filed
Affected Securities
PINK: EKDKQ
Lawsuit Overview
Type of Lawsuit: 
Other
Summary: 

San Diego, Feb. 8, 2012 (Shareholders Foundation) -- An employee of Eastman Kodak Company (PINK:EKDKQ) that participated in the Employees’ Savings and Investment Plan filed a lawsuit against certain executives and directors of Eastman Kodak and other fiduciaries for allegedly allowing the employee benefit plans to invest in Eastman Kodak's stock.

According to the complaint the plaintiff alleges that the defendants breached their fiduciary duties as Eastman Kodak Company was spiraling toward bankruptcy. Specifically the plaintiff alleges that the defendants failed in not eliminating Eastman Kodak Company’s stock as an investment choice for employees and in not divesting the plans of Eastman Kodak stock "when they knew or should have known it was not a suitable or appropriate investment."

Eastman Kodak’s annual Revenue fell from $10.30billion in 2007 to $7.18billion in 2010 and its Net Income of $676million for ’07 turned into a Net Loss of $687million in 2010.
In mid-January Kodak filed for bankruptcy. Eastman Kodak Company shares traded at $0.55 on January 18 before the company filed for bankruptcy.

However, the plaintiff alleges that the defendants did not disclose to stock-plan participants complete information about Eastman Kodak’s dire financial condition and continued to sell shares to employees and invest in them ahead of the bankruptcy.

The plaintiff claims that Eastman Kodak should have known that it was suffering from a dying technology, that it was unable to bring new, profitable products to the market quickly enough, and that it could not generate enough cash from patent lawsuits and was suffering from a liquidity crisis.

Eastman Kodak Co.'s stock fell from slightly above $4 per share in the end of 2009 to less than $3 in 2010 and then under $1 per share in mid-2011. It was then when bankruptcy was first mentioned in the media but denied by Eastman Kodak Company.

Those who are former and current employees or members of any of Eastman Kodak Company’s investment plans or profit sharing retirement plans and that purchased or held Eastman Kodak Company (PINK:EKDKQ) shares, have certain options and should contact the Shareholders Foundation, Inc.