ROCHESTER, N.Y. (WIVB)-Insider trading allegations are endangering a three-quarter of a billion-dollar deal for what used to be one of the region’s biggest companies.
Kodak announced last month it landed 765-million-dollars in federal loan money to develop prescription drug ingredients. That deal is now on hold as the international development finance corporation investigates the company for potential insider trading.
A stock market expert says the investigation is about whether the company initiated a set of rules that would let the CEO earn millions off a deal as monumental as this.
“It’s entirely possible that what the investigators will find is that Kodak was clumsy was perhaps ethically questionable – but it seems like nothing that they did was illegal,” said stock expert George Conboy.
If the investigation clears Kodak of any wrongdoing and the deal goes through, it will bring 300 jobs to Rochester.