Shares of Kodak rallied on Wednesday after executives of the company were found to have not taken personal advantage of prior knowledge regarding a major loan from the U.S. government announced in late July.
Kodak was up more than 80% in morning trading after Akin Gump, an international law firm headquartered in Washington, cleared the company of insider trading accusations.
Akin Gump investigated the company after shares rocketed to more than 2,750% in the days following the blockbuster deal, which provided a lifeline for the struggling camera manufacturer.
Kodak’s $765 million deal with the government has been placed on hold by the U.S. International Development Finance Corporation until the Securities and Exchange Commission investigates the dramatic rise in valuation the company saw on the back of the government deal.
The actions of Kodak CEO Jim Continenza and other company executives were placed under scrutiny following the surge in valuation, but investigators at Akin Gump found no evidence of insider trading.
In a statement released Wednesday, Kodak officials said the company is committed to the “highest levels of governance and transparency.”
“Kodak is committed to the highest levels of governance and transparency, and it is clear from the review’s findings that we need to take action to strengthen our practices, policies, and procedures,” Kodak said in a statement.
