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Shareholder class action filed against Kodak
Mark Peters : June 25th 2005 - 15:15 CET
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 Shareholder class action filed against Kodak : The following statement was issued by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Western District of New York on behalf of all securities purchasers of Eastman Kodak Company between April 23, 2003 and September 25, 2003 inclusive (the "Class Period"). The complaint charges Kodak, Daniel A. Carp, and Robert H. Brust with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them.
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 Kodak - List of facts
The Company was experiencing significant pricing pressure from competitors; the Company's core film and paper business was declining; as a consequence of the foregoing, the Company was forced to make significant cuts to its dividend to pay for substantial restructuring expenses, the Company's future profits would decline due to the switch from the high-margin film products to the less profitable digital technology, and that the Company's statements regarding its growth and progress lacked in all reasonable basis when made.
Kodak - Plans for the future
On September 25, 2003, the Company unveiled its plans for future development. The discussion revealed that Kodak, in order to maintain profitability, would have to switch from the high-margin film and paper products to the less profitable digital technology. The switch would negatively impact Kodak's future earnings potential. Additionally, the restructuring of the Company would result in a substantial dividend cut. The truth about the Company's future prospects shocked the market. Shares of Kodak fell $4.84 per share, or 17.93 percent, on September 25, 2003, to close at $22.15 per share.
Plaintiff - Recover damages
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors.
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