Notice is hereby given that a class action lawsuit has been filed on behalf of those who purchased or otherwise acquired Braskem SA (NYSE: BAK) (“Braskem”) American Depositary Receipts ("ADRs") between June 1, 2010 and March 11, 2015, inclusive (the “Class Period”).
Braskem SA investors may receive additional information about the case by clicking the link "Join this Class Action" above.
According to the complaint, Braskem is a Brazilian petrochemical company that is the largest petrochemicals producer in Latin America. Braskem is also the largest producer of thermoplastic resins in the Americas.
Naphtha accounts for half of Braskem’s production costs and is the main ingredient for making petrochemicals in Brazil. The complaint alleges that Braskem purchases naphtha from Petróleo Brasileiro S.A. – Petrobras (“Petrobras”) under long-term agreements. Petrobras provides approximately 70% of Braskem’s naphtha needs.
The complaint alleges that Petrobras was involved in a massive scheme to funnel billions of dollars in kickbacks to executives at Petrobras. According to the complaint, and throughout the Class Period, the defendants made materially false and misleading statements regarding the Braskem’s business, operational, and compliance policies. On March 11, 2015, the truth began to emerge 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, according to testimony made by former Petrobras executive Paulo Roberto Costa and self-confessed money launderer Alberto Youssef, Braskem paid at least $5 million annually to Petrobras between 2006 and 2012. The payments were made to acquire crude derivative contracts like propylene and naphtha at cheaper prices.
Following this disclosure, Braskem ADRs declined over 20%, or $1.80 per ADR, on March 11, 2015.
If you are a member of the class described above, you may no later than August 31, 2015, move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP.
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq.
Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706