Law Offices of Howard G. Smith Announces That A Class Action Has Been Filed On Behalf Of Braskem, S.A. Investors
August 12 2015 - 11:15AM
Business Wire
Law Offices of Howard G. Smith announces that a class action has
been filed on behalf of investors of Braskem S.A. (“Braskem” or the
“Company”) American Depositary Receipts (“ADRs”), who purchased
shares between June 1, 2010 and March 11, 2015, inclusive (the
“Class Period”). The complaint against Braskem has been filed in
the United States District Court for the Southern District of New
York, and docketed as Case No: 15-cv-5183. Braskem investors have
until August 31, 2015 to file a motion to serve as lead
plaintiff in the class action.
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, an one day
decline of over 20% on unusually heavy volume.
If you purchased Braskem securities during the Class Period,
have information regarding these allegations, and/or would like to
learn more about your legal rights in connection with this notice
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