Kodak Allegedly Touted Covid-19 Loan to Increase Stock Price (1)

Eastman Kodak Co. was hit with the first proposed securities class action over the company’s stock jump after reports it would get a government loan to make ingredients for Covid-19 drugs.

The shareholder suit, filed in the U.S. District Court for the District of New Jersey, alleges the company engaged in a fraudulent scheme to artificially inflate its stock price.

Named plaintiff Tiandong Tang sued on behalf of shareholders who acquired Kodak stock between July 27 and Aug. 7, alleging violations of the Securities Exchange Act.

Kodak issued a statement on July 27 to media outlets on the imminent public ...