The New York County State Supreme Court has ruled that Kodak's CEO Jim Continenza must publicly testify on alleged actions of insider trading, New York Attorney General Letitia James announced Tuesday as part of her office's ongoing investigation.

In a deal announced last July, Kodak was due to receive a $765 million loan to launch a new pharmaceutical production operation. The deal, part of the Trump administration's Defense Production Act, would bring in millions of dollars and hundreds of new jobs to the Rochester area.

However, it was put on hold by the U.S. International Development Finance Corp. (DFC) when questions came up about a media leak of the deal and how and when some Kodak leaders acquired stock options. James said Continenza bought 46,000 shares of Kodak stock last year, and that he made the purchase while he was in discussions with the Trump White House.

James says the order requires Continenza and Kodak General Counsel Roger Byrd to publicly testify about what she calls "Kodak’s subsequent false statements to investors last month about that trading, just before its annual meeting of shareholders." The order requires Byrd to publicly testify on September 24, and Continenza to publicly testify on October 1. James says the order also requires Kodak to produce relevant documents to the Office of the Attorney General by June 30.

In December 2020, the DFC cleared Eastman Kodak of any wrongdoing. However, the AG's office continues its investigation.

“Corporate greed will never go unchecked in New York,” said Attorney General James said in a statement. “As millions of New Yorkers and Americans across this nation lost their jobs and were waiting for unemployment checks, Kodak’s CEO was using insider information to illegally trade company stock. Kodak even double downed on this fraud by relaying false information about this trade to investors just before the company’s annual meeting last month. Today’s order will force Mr. Continenza and Kodak’s general counsel to testify in open court, where the facts will be exposed before the American people. Corporate executives don’t get to play by their own rules, which is why my office will use every tool at its disposal to hold those who violated the law accountable.”

James had announced that she was seeking to compel Continenza to testify earlier this month.

"Mr. Continenza was not in possession of material non-public information and, contrary to the Attorney General’s allegations, his small stock purchase was pre-approved by Kodak’s General Counsel during an open trading window in accordance with Kodak’s insider trading policy and was subsequently found to be compliant by outside counsel in an independent investigation," A Kodak spokesperson said in part in a statement released June 2. "Importantly, Mr. Continenza has purchased Kodak stock in virtually every open window period – and has never sold a single share."