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Kodak Obtains Favorable Judgment in Securities Litigation

Tuesday, November 07, 2006

Press release from the issuing company

ROCHESTER, N.Y --Nov. 6, 2006-- Eastman Kodak Company today announced that the U.S. District Court for the Western District of New York granted summary judgment in favor of the company in a class action lawsuit brought on behalf of shareholders. Plaintiffs filed the suit in federal court on behalf of shareholders who purchased Kodak stock between April 23, 2003 and September 25, 2003. On November 1, 2006, the court dismissed the suit against Kodak, concluding that the allegations were insufficient to support the claims. The lawsuit alleged that Kodak failed to accurately disclose the state of its photographic film and paper business during that time period and failed to adequately inform investors of the risks associated with its business. The court ruled that Kodak had accurately disclosed the state of its business and had clearly informed potential investors that the company's plans were subject to risk and the nature of those risks. "We take our financial disclosure obligations very seriously," said Joyce P. Haag, General Counsel and Senior Vice President, Eastman Kodak Company. "We strive to ensure that investors -- current and potential -- fully understand the characteristics of our business, and we believe that the court's decision reflects that effort." The litigation commenced in June 2005 in federal court for the Southern District of New York. Later that month, and in August 2005, similar lawsuits were filed against Kodak in the federal court for the Western District of New York, and the cases were then consolidated in the Western District of New York. Kodak was represented by Nixon Peabody LLP and Gibson, Dunn & Crutcher LLP. Subsequent to the filing, a derivative action was filed in New York State court, in which the facts and allegations underlying the suit are essentially the same as those that were dismissed in the federal action. This matter is still pending.

 

 

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