Kodak Pharmaceuticals

History

2020: Corruption scandal in Kodak during Kodak Pharmaceuticals creation

In the middle of August, 2020 stocks of Kodak dropped almost by 45% after the companies refused the promised credit before completion of investigation. Apparently, top managers of the company decided to earn from news about opening of pharmaceutical division of Kodak Pharmaceuticals and broke laws on insider trade because of what they came into the view of law enforcement agencies.

Sharp rise of stocks of Kodak, whose business for many years is in decline, began at the end of July, 2020. Then for the first time there was news that the International Finance Corporation of development of the USA is ready to allocate the companies the credit of $765 million for production organization of medicines.

Top managers of Kodac earned tens of millions from news about entry of the company into pharmaceutical market

As a result of the stock of Kodak grew by thousands of percent. Last time stocks of the company grew at such rates only in 2018 when it intended to release an office token which will provide the platform of licensing on the basis of a blockchain.

On July 28 we signed the provisional agreement with Eastman Kodak, - the International Finance Corporation of development of the USA reported. - However recent charges from law enforcement agencies cause in us serious concern. We will not sign the contract until these charges are confirmed or disproved.

But though the provisional agreement concerning the credit was signed on July 28, the first surge in trade activity followed still on July 27 when the share price jumped by 25%. This unexpected growth attracted interest from regulatory authorities, and democrat senator Elisabeth Warren asked them to find out whether laws on insider trade were broken. The U.S. Securities and Exchange Commission began investigation and studies the share options provided to heads and board members of Kodak shortly before the declaration of the future transaction.^[1]

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