Eastman Kodak Co. investors sought to persuade a federal appeals court that top executives and directors must face allegations over self-dealing that doomed a $765 million Covid-19 government loan, but the Second Circuit panel appeared skeptical of the derivative suit.
A federal district judge who tossed the underlying case wrongly ruled that the Kodak board conducted a good faith investigation before it rejected the derivative claims of insider trading related to stock options executives received before the loan was announced, the investors’ lawyer said at oral arguments Thursday.
The government loan agency backed out of the arrangement—which would have involved ...
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