The company said internal “deficiencies” allowed five former officers and employees to exercise 300,000 options they had previously forfeited, according to a filing with the Securities and Exchange Commission. Kodak said it took a $5.1m expense in the third quarter related to the options.
Errors in the accounts of other current and former employees could have resulted in additional “inappropriate exercises”, it warned.
Kodak said it would seek to recover $3.9m from the five former executives for the fair value of the shares, as well as the right to retain $3m worth of withholding taxes on behalf of the ex-employees. Kodak added that it could not be certain its claims would succeed.
‘Enforcement 40’ for 2020
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