BENSALEM, Pa.--(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 email@example.com, or visit our website at http://www.howardsmithlaw.com.
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