from Forbes.com;

Looks like Kodak is trying for mediocrity's top slot.  No DSLRs, sell
more cheap P&S
Walmart specials than any other company and STILL loses money!  And
they gave
their CEO a $10M bonus...

Now this:

New York -

A former Eastman Kodak employee is bringing a lawsuit against the
photography giant for wrongful termination, alleging the company fired
her for blowing the whistle on a cost-cutting plan that would mislead
customers and damage their photos.

Maya Raber, a director of engineering since 2002 at Kodak's (nyse: EK -
news - people ) popular EasyShare Gallery, an online photo-sharing
site, says the plan called for compressing uploaded photographs and
would lead "customers to believe their photos were being optimized,
when in fact they were being irreversibly damaged," according to the
legal complaint filed in Alameda County, Calif., yesterday. More than 1
billion photos are stored on the EasyShare site.

All digital cameras use some form of compression to store photos, but
excessive compression can affect the quality of the image, making it
grainy and lacking in detail. Compression saves money because such
images are much smaller and thus much cheaper to store. A compressed
photo cannot be restored.

"Instead of making sure you delight your customers, I sensed a very
arrogant approach saying, 'We're going to save the money, and we're
going to take advantage of the fact that customers aren't going to
understand,' " Raber says. "I thought that it was morally deceiving,
morally wrong."

Kodak flatly denies the allegations. "We can assure you that Ms.
Raber's accusations are completely false," says Kodak spokeswoman Liz
Scanlon.

"We have not compressed images that are stored in the Gallery without
our customers' knowledge," Scanlon adds. "Kodak has acted in a manner
that is consistent with our corporate policies and ethics. We will
vigorously defend ourselves against all claims to the contrary."

Raber claims that after having been an exemplary employee at the
company for more than three years, she was abruptly fired in August
2005 following her continued opposition to the compression plan.

Raber says her team of engineers protested after being told to create a
compression algorithm that would have affected all the images stored
online at the EasyShare Web site. She further states that at least one
employee resigned after being told by one Kodak executive that
"objection to the project will be noted" and another stated that "this
is not a democracy, the project goes on."

After composing a whistle-blower report to give to Kodak's vice
president and other executives in mid-July, Raber was told in August
her job had been eliminated due to restructuring, she says. No one else
was laid off or dismissed.

Ultimately, Raber says the compression project did not go forward,
although she claims the EasyShare Gallery "Easy Upload" option
(currently on the site) does in fact compress photos without directly
informing users.

Raber's attorneys are suing for wrongful termination/retaliation in
violation of public policy, intentional infliction of emotional
distress, and breach of implied covenant of good faith and fair dealing.