BAK INVESTORS: Glancy Prongay & Murray LLP Announces the Filing of a Securities Class Action on Behalf of Braskem, S.A. Inves...
03 July 2015 - 07:02AM
Business Wire
Glancy Prongay & Murray LLP announces that it has filed a
class action lawsuit on behalf of investors of Braskem S.A.
(“Braskem” or the “Company”) American Depositary Receipts (“ADRs”)
(NYSE:BAK), 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 September 1, 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 have information or would like to learn more about these
claims, or have any questions concerning this announcement or your
rights or interests with respect to these matters, please contact
Lesley Portnoy, of Glancy Prongay & Murray LLP, 1925 Century
Park East, Suite 2100, Los Angeles, California 90067 at
310-201-9150, Toll-Free at 888-773-9224, by email to
shareholders@glancylaw.com, 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.
This press release may be considered Attorney Advertising in
some jurisdictions under the applicable law and ethical rules.
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Glancy Prongay & Murray, Los AngelesLesley Portnoy,
310-201-9150 or
888-773-9224shareholders@glancylaw.comwww.glancylaw.com