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NY AG: Kodak's CEO will have to publicly testify as part of insider trading probe

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Top of Kodak Office Tower houses falcon nest box.

Eastman Kodak’s CEO, Jim Continenza, will have to publicly testify on allegations of insider trading.

That word came from New York State Attorney General Letitia James on Tuesday. James said that Continenza will have to testify on October 1, 2021 and Kodak General Counsel Roger Byrd will have to testify a week before that on September 24.

James said a State Supreme Court judge also ordered the company to produce relevant documents to the attorney general by June 30.

The AG has raised questions about Continenza’s purchase of 46,000 shares of Kodak stock early last summer. She said that he made the purchase while he was leading “secret discussions” with the Trump White House and the federal government for a $655 million loan to enable Kodak to make pharmaceutical ingredients needed during the COVID-19 pandemic.

The proposed loan eventually grew to $765 million, but it never got final approval.

Kodak released this statement on Tuesday night: "This ruling is strictly procedural and fully expected. It has nothing to do with the merits of the case.  Jim Continenza was pre-cleared to trade by the company’s general counsel.  He did nothing wrong.  We are confident that the facts and the law are on our side and are fully prepared to present our case in court."

The attorney general maintains that Kodak’s insider trading policy was not properly followed.

Randy Gorbman is WXXI's director of news and public affairs. Randy manages the day-to-day operations of WXXI News on radio, television, and online.