The suit claims that senior executives and board members used these funds to invest heavily in Kodak stock, which it described as "imprudent" given the company's financial decline.

It alleges that this action also propped up share prices and that these executives benefitted as they too owned a substantial amount of the same stock.

Shares in the company were trading above $4 (£2.50) a year ago, and are currently at 35c.

The suit, which is bidding for class-action status, seeks a court order directly from the executives and board members to personally reimburse the plans for any losses incurred as well as pay back profit made at the expense of the retirement and savings plans.

The action was filed 27 January in the US District Court for the Western District of New York. Kodak responded in a statement saying it believed the suit was "without merit" and would "vigorously defend against it".