What happened

Shares of Eastman Kodak (NYSE:KODK) surged 25.6% on Thursday, furthering the stock's rebound following its internal investigation of the events surrounding its loan award from the U.S. government.

So what

Kodak's stock price skyrocketed in late July after it was awarded a $765 million Defense Production Act loan, which was meant to help it launch a new pharmaceutical supply business. However, some of the stock's gains came the day before the award was announced, and lawmakers demanded there be an investigation into potential insider trading and other possible wrongdoings. 

A person is pointing to an upwardly sloping line that's above a declining line.

Eastman Kodak's shares rose sharply on Thursday. Image source: Getty Images.

In response to these demands, Kodak formed a special committee to investigate possible insider trading on the part of its CEO and other executives prior to the formal announcement of the loan award. The company hired law firm Akin Gump Strauss Hauer & Feld to conduct the probe. On Tuesday, the law firm released an 88-page report stating its conclusion that the company's leadership team "did not violate the securities regulations or other relevant laws, engage in a breach of fiduciary duty, or violate any of Kodak's internal policies and procedures." Investors cheered the news.

Now what

It's important to note that while Kodak's investigation did not uncover any illegal activity, the U.S. International Development Finance Corporation and the Securities and Exchange Commission are both reportedly conducting their own investigations into Kodak's loan-related activities. Thus, the situation is far from resolved, and investors may be acting prematurely by bidding up Kodak's shares before those government entities have concluded their probes.