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Kodak suing former executives
Company claims couple owes more than $625,000
Kodak suing former executives
Company claims couple owes more than $625,000
Eastman Kodak Co. is suing two former executives — a husband and wife — to force them to repay money they received from the sale of stock options that the company says they erroneously received.
Kodak filed separate complaints in state Supreme Court in Rochester against Pittsford residents Brad and Dolores Kruchten.
Brad Kruchten left Kodak in 2018 as a senior vice president. Dolores Kruchten left the company in 2018 as president of Eastman Business Park and corporate real estate. They currently operate Kruchten Properties in Pittsford.
Brad Kruchten was employed by Kodak from 1982 until his retirement in April 2018. Dolores Kruchten worked at Kodak from June 8, 1981, until Sept. 4, 2013, and then again from Aug. 24, 2015, until Nov. 6, 2018.
Both participated in an incentive program that offered them the opportunity to purchase stock options at a “strike price.”
Kodak used the company Computershare to provide services for employees participating in the stock option program. When an employee wanted to cash in their stocks, they would contact Computershare and Computershare would forward the instructions to a broker.
The broker would purchase the shares of Kodak stock at the strike price, sell the shares at the market price, and return the proceeds to Computershare. Computershare then would deduct taxes and fees and send the proceeds to the participant.
When the Kruchten contacted Computershare on separate occasions to sell shares, Computershare erroneously showed that they had more options available than they actually had, according to the lawsuits.
As a result, in July 2020, Brad Kruchten erroneously received $358,023.82 to which he was not entitled, according to the suit. And Dolores Kruchten received $270,476.35 in proceeds to which she was not entitled.
Kodak has asked the Kruchten to return the funds, but they have refused, according to the complaint.
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