Kodak employee sues company over failure to disclose financial trouble

The lawsuit seeks class action status and claims participants in Kodak’s employee investment and stock plans suffered losses

The drama never seems to end for Kodak. If you thought after it had filed for bankruptcy the continual circus of patent sales, leadership changes and lawsuits would screech to a halt, you thought wrong.

Now, a Kodak employee has filed a civil lawsuit, which is seeking class action status, against the photography company’s board of directors and other fiduciaries of the company’s retirement plans, claiming that Kodak breached its duties to participants in its employee investment plan and employee stock ownership plan.

Mark Gedek, who still works for Kodak, said in the lawsuit that as the company slipped and stumbled its way toward bankruptcy, it did not disclose its serious financial trouble to stock-plan participants and it continued to keep investments in the company’s equity long after it was prudent to do so.

Christopher Veronda, a spokesperson for Kodak, said in an emailed statement that “Kodak believes the suit is without merit, and we will vigorously defend against it.”

Read more at Thomson Reuters.

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