(CNN) – Kodak stock took a big hit Monday. Company shares plunged 40 percent after a $765 million federal loan was put on hold.
Regulators are reportedly looking into allegations of insider trading.
In a tweet Friday, the U.S. International Development Finance Corporation said the loan wouldn’t be granted unless Kodak is cleared of the allegations.
The DFC’s announcement came a few days after questions arose about heavy trading volume for the company’s stock.
Kodak executives are also under criticism about receiving stock options on July 27, a day before the loan announcement.
The $765 million loan was meant to launch Kodak Pharmaceuticals, which will make generic active pharmaceutical ingredients to reduce America’s dependency on foreign drug makers.
Kodak didn’t immediately respond for comment.
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