ROCHESTER, N.Y. (WROC) —An investigation into Eastman Kodak broke is in its early stages, and many are wondering if this will impact the multi-million dollar deal between the company and the federal government or the hundreds of jobs it’s suppose to bring with it.
A new internal committee will look into whether Eastman Kodak broke insider trading laws after the company’s stock surged before announcing a $765 million partnership with the government.
The Securities and Exchange Commission investigation into Eastman Kodak is looking at one main issue-according to investment advisory Christopher Carosa.
“Did they sell stock at a profit or buy stock prior to this information being released to the public? That’s the key issues here,” said Christopher Carosa, President Carosa Stanton Asset Management, investment advisory.
The investigation is concerning to the Rochester economy that could benefit largely from the million dollar government partnership. But Carosa says these types of investigations are normal and it’s not the deal that would suffer-but the individuals.
“In fact it’s almost better, if it’s not real it’s better for the SEC to say hey we looked at it and it’s all cool, we’re fine here. Even if the SEC does find something, there will be problems with the individuals as opposed to the company itself,” said Carosa.
The idiviudals being looked at arepeople like Kodak’s CEO Jim Continenza
In response to an inquiry, Kodak sent News 8 this statement:
“The stock purchases you refer to are a continuation of Jim Continenza’s ongoing, regular investments in Kodak and are in full compliance with regulatory guidelines for investment activity.”
The deal is set to bring 300 jobs to the Rochester area, brining with it a potential economic boast that Carosa says this investigation will have a small, if any impact on.
“We have to hope that politics or national politics doesn’t get in the way of this thing because if certainly appear to benefit or community which I think it something that we like,”said Carosa.
For now, it seem structure of this deal is not in jeopardy and we can still hope to see that economic gain.