LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP (“GPM”) reminds investors that a class action lawsuit has been filed on behalf of a class of investors who purchased shares of Braskem S.A. (“Braskem” or the “Company”) American Depositary Receipts (“ADRs”) (NYSE: BAK), between June 1, 2010 and March 11, 2015, inclusive (the “Class Period”). 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.
Braskem investors have until August 31, 2015 to file a motion to serve as lead plaintiff in the class action. If you have information or would like to learn more about these claims, or have any questions concerning this announcement, please contact Casey Sadler, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to firstname.lastname@example.org, or visit our website at http://www.glancylaw.com. If you inquire by email please include your mailing address, telephone number and number of shares purchased.
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