RADNOR, Pa., July 22, 2015 /PRNewswire/ -- The law firm of Kessler Topaz Meltzer & Check, LLP announces that a shareholder class action has been filed against Braskem SA (NYSE: BAK) ("Braskem" or the "Company") on behalf of purchasers of the Company's American Depositary Receipts ("ADRs") between June 1, 2010 and March 11, 2015, inclusive (the "Class Period").
For additional information about this lawsuit, or to request information about this action online, please visit http://www.ktmc.com/new-cases/braskem-sa.
According to the complaint, Braskem is a Brazilian petrochemical company and is the largest petrochemical producer in Latin America. Naphtha accounts for half of Braskem's production costs and is the main ingredient for making petrochemicals in Brazil. At relevant times during the Class Period, Braskem purchased naphtha from Petróleo Brasileiro ("Petrobras") under long-term agreements.
The complaint alleges that, throughout the Class Period, Braskem was involved in a massive scheme to funnel millions of dollars in kickbacks to Petrobras executives. As a result, during the Class Period Braskem and certain of its executive officers made a series of materially false and misleading statements to investors about Braskem's business, operational and compliance policies.
On March 11, 2015, the truth emerged when a report from a local newspaper implicated Braskem in the corruption scandal surrounding Petrobras. As reported by the local paper, testimony from former Petrobras executives and others demonstrated that Braskem had routinely paid at least $5 million annually to Petrobras representatives between 2006 and 2012. Following this disclosure, Braskem's ADRs declined $1.80, or over 20%, to close on March 11, 2015 at $7.05.
Shareholder Update: On July 6, 2015, a local newspaper reported that Petrobras was exploring selling its 36.1% ownership stake in Braskem. The article further reported that by selling that ownership stake, "Petrobras could resolve the problem of selling naphtha to a client in which the company has a significant financial interest."
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 (Darren J. Check, Esq., D. Seamus Kaskela, Esq. or Adrienne O. Bell, Esq.) at (888) 299 – 7706 or (610) 667 – 7706, or via e-mail at info@ktmc.com. The complaint in this action was not filed by Kessler Topaz Meltzer & Check. For additional information about the lawsuit, or to request information about the action, please visit http://www.ktmc.com/new-cases/braskem-sa.
Members of the class may, no later than August 31, 2015, petition the Court for appointment as a lead plaintiff of the class. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. In order to be appointed as a 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 in the action. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Kessler Topaz Meltzer & Check prosecutes class actions in state and federal courts throughout the country. Kessler Topaz Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. The firm represents investors, consumers and whistleblowers (private citizens who report fraudulent practices against the government and share in the recovery of government dollars). For more information about Kessler Topaz Meltzer & Check, or for additional information about participating in this action, please visit www.ktmc.com.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
Darren J. Check, Esq.
D. Seamus Kaskela, Esq.
Adrienne O. Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
(888) 299 - 7706
(610) 667 - 7706
info@ktmc.com
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SOURCE Kessler Topaz Meltzer & Check, LLP