NEW YORK, July 2, 2015 /PRNewswire/ -- Bernstein Liebhard LLP announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Braskem S.A. ("Braskem" or the "Company") (NYSE : BAK ) American Depository Receipts ("ADRs") between June 1, 2010 and March 11, 2015, inclusive (the "Class Period").
Braskem is a Brazilian petrochemical company and is the largest producer of petrochemicals in Latin America. The Company is also the largest producer of thermoplastic resins in the Americas. Braskem buys naphtha, which accounts for half its production costs and is the main ingredient for making petrochemicals in Brazil, from its largest shareholder, Petróleo Brasileiro S.A. – Petrobas ("Petrobras"), under long-term agreements. Petrobras provides approximately 70% of Braskem's naphtha needs.
The complaint charges Braskem and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Specifically, the complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or omissions regarding the effectiveness of Braskem's internal controls and procedures.
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 Petrobas. According to testimony made by former Petrobas executive Paulo Roberto Costa and self-confessed money launderer Albert Youssef, Braskem paid at least $5 million annually in bribes to Petrobas between 2006 and 2012 to acquire crude derivative contracts like naphtha and propylene at cheaper prices.
On this news, shares of Braskem fell $1.80 per ADR, over 20%, on March 11, 2015.
Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired Braskem ADRs during the Class Period. If you purchased or otherwise acquired Braskem ADRs as described above, and either lost money on the transaction or still hold the shares, you may wish to join in this action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than August 31, 2015.
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. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.
If you are interested in discussing your rights as a Braskem shareholder and/or have information relating to the matter, please contact Joseph R. Seidman, Jr. at (877) 779-1414 or firstname.lastname@example.org.
You can obtain a copy of the complaint from the clerk of the court for the United States District Court for the Southern District of New York.
Bernstein Liebhard LLP has pursued hundreds of securities, consumer and shareholder rights cases and recovered over $3 billion for its clients. The National Law Journal has recognized Bernstein Liebhard for twelve consecutive years as one of the top plaintiffs' firms in the country.
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SOURCE Bernstein Liebhard LLP