A federal court has granted a summary judgment in favor of Eastman Kodak Co. in a class action lawsuit brought on behalf of shareholders, the company said Monday.
Court dismisses Kodak suit
A federal court has granted a summary judgment in favor of Eastman Kodak Co. in a class action lawsuit brought on behalf of shareholders, the company said today.
The plaintiffs filed the suit in federal court on behalf of shareholders who purchased Kodak stock between April 23 and Sept. 25, 2003. On Nov. 1, the U.S. District Court for the Western District of New York dismissed the suit against Kodak, concluding the allegations were insufficient to support the claims.
The lawsuit alleged that Kodak failed to disclose accurately the state of its photographic film and paper business and failed adequately to inform investors of the risks associated with its business. The court ruled that Kodak had disclosed the state of its business and clearly had informed potential investors that the companyâ€™s plans were subject to risk and the nature of those risks.
â€œWe take our financial disclosure obligations very seriously,â€ said Joyce Haag, Kodak general counsel and senior vice president. â€œWe strive to ensure that investorsâ€”current and potentialâ€”fully understand the characteristics of our business, and we believe that the courtâ€™s decision reflects that effort.â€
The litigation began in June 2005 in federal court for the Southern District of New York. Similar lawsuits were filed in the federal court for the Western District of New York over the next couple of months. The cases then were consolidated in the Western District.
A derivative action was filed in state court, in which the facts and allegations underlying the suit are essentially the same as in the federal action, Kodak officials said. That matter is pending.
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