Kodak Investors Lose Bid to Revive Covid Loan Suit Against Board

Eastman Kodak Co. investors can’t resume their suit against top executives and directors over alleged self-dealing that doomed a $765 million Covid-19 government loan, the Second Circuit ruled Wednesday.

The investors, who had filed suit against the execs on Kodak’s behalf, waived their key argument that the district court shouldn’t have resolved the issue of whether the company’s board conducted its own probe in good faith before declining to pursue the derivative claim itself, the appeals court said.

The US Court of Appeals for the Second Circuit said the lower court properly tossed the suit pursuant to a New Jersey ...