Law Offices of Howard G. Smith Reminds Investors: One Week Until Deadline In The Class Action Lawsuit Against Braskem, S.A.
August 24 2015 - 11:29AM
Business Wire
Law Offices of Howard G. Smith reminds investors of the
August 31, 2015 lead plaintiff deadline in the class action
lawsuit filed on behalf of a class comprising purchasers of the
securities of Braskem S.A. (“Braskem” or the “Company”), between
June 1, 2010 and March 11, 2015, inclusive (the “Class Period”).
This class action seeks to recover damages against defendants for
alleged violations of the federal securities laws.
Braskem is the largest producer of thermoplastic resins in the
Americas. Braskem buys naphtha, which accounts for half of its
production costs and is the main ingredient for making its
petrochemicals, from Petróleo Brasileiro S.A. – Petrobras
(“Petrobras”). Petrobras provides approximately 70% of Braskem’s
naphtha needs.
According to the complaint, the truth began to emerge on March
11, 2015, when a report from a São Paulo newspaper, Folha de S.
Paolo, implicated Braskem in the corruption scandal surrounding
Petrobras. As reported by Folha de S. Paolo, testimony from a
former Petrobras executive alleged that Braskem engaged in a
bribery and corruption scandal that enabled the Company to purchase
raw materials at favorable prices. According to the testimony
Braskem allegedly paid annual bribes to Petrobras, initially set at
$5 million, to buy crude derivatives such as naphtha and propylene
at low prices from at least 2006 to 2012.
After reports of the pervasive bribery scandal surfaced, the
Company’s equity and debt securities prices fell sharply and
investors have been damaged, with Braskem ADRs falling $1.72 per
ADR, to close on March 11, 2015 at $6.71 per ADR, a one day decline
of over 20% on unusually heavy volume.
If you purchased securities of Braskem during the Class Period,
if you have information or would like to learn more about these
claims, or have any questions concerning this announcement, please
contact Howard G. Smith, Esquire, of Law Offices of Howard G.
Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020
by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by
email to howardsmith@howardsmithlaw.com, or visit our website at
http://www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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Law Offices of Howard G. SmithHoward G. Smith,
Esquire215-638-4847888-638-4847howardsmith@howardsmithlaw.comwww.howardsmithlaw.com