Kodak Deal On Hold Over Insider Trading Allegations

August 8, 2020 Business, Coronavirus

A deal that would have seen Eastman Kodak get funding to produce drug ingredients that could have helped fight the coronavirus has been put on hold.

In a tweet Friday evening, the U.S International Development Finance Corporation said it was holding up the deal as regulators reportedly look into trading activity that sent Kodak’s shares surging on news of the initial agreement.

Kodak released the news to local reporters in Rochester, New York, where it is headquartered, on July 27 then asked several outlets that had picked up the story to delete it, which they did. Questions have been raised by Sen. Elizabeth Warren, D-Massachusetts, and others about the possibility of insider trading involving the announcement.

VERY disappointed last week’s great deal with Kodak tarnished by allegations. Absolutely RIGHT move by DFC!
We must redouble efforts to bring our pharma manufacturing home!! #BuyAmerican https://t.co/2OfAjJFHKH

— Peter Navarro (@PeterNavarro45) August 7, 2020