ROCHESTER, N.Y. (WROC) – Kodak pharmaceuticals is on hold. The Federal Government announced it’s investigating allegations of possible insider trading. The $795 million loan to Kodak is now up in the air until the investigation is complete.
Amid the announcement, Kodak shares dropped nearly 28% — closing just under $11.
Movement with Kodak Pharmaceuticals is on pause. Stock market expert George Conboy said the International Development Finance Corporation is leading the investigation. Conboy said there are two things that led to this.
“The CEO bought close to 50,000 shares of Kodak stock at roughly $2 a share about a month before the deal was signed,” Conboy said. “Kodak says that purchase was part of a regularly scheduled set of purchases by the CEO. If that is true, and it seems likely that it is, then there was nothing improper with that purchase but they will investigate to see if what Kodak says is true.”