"It looks to me like something that will have very little chance for success," said financial analyst George Conboy, Brighton Securities. The suit alleges that because executives and board members own a lot of stock they had incentive to keep stock in the retirement plans. "Virtually all big public companies make available to buy their stock in their 401k plan, but virtually never does any corporation give any employee advice on should they buy it or not."
Kodak filed for bankruptcy January 19th. The suit says Kodak cost retirees a lot of money because retirement plans rely on stock. Conboy says Perez's own words could hurt the company. "The CEO of Kodak actually said as recent as July of 2007 that the company would be profitable and sustainable by 2012," said Conboy. "That could be a problem."
The law firm Faruqi & Faruqi, LLP, is representing Gedek. Lawyers hope to make it a class action lawsuit and represent other employees who bought stock after January 2010.
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