LOS ANGELES – (Business Wire) – Frank R. Cruz law firm announces that a class action lawsuit has been filed on behalf of the individuals and entities that have purchased or otherwise acquired Braskem SA (“Braskem” or the “Company”). (NYSE: BAK) securities between May 6, 2016 and July 8, 2020 inclusive (the “Class Period”). Braskem investors have until October 26, 2020 to file a motion from the lead plaintiff.
If you are a shareholder who has suffered a loss, click here to participate.
On April 2, 2019, media reported that Braskem was being sued by local authorities in connection with a geological event the company allegedly caused in Alagoas, Brazil. On the same day, the company announced that the court proceedings "required the freezing of amounts and assets totaling approximately R $ 6.7 billion in order to ensure possible damage to the general public".
In that news, the company's stock price fell $ 1.60, or 6%, in two trading sessions, closing at $ 25.14 per share on April 3, 2020.
Then, on July 9, 2020, before the market opened, Braskem announced that the geological damage from salt mining was more widespread than originally thought. In particular, the company announced that 1,918 properties had to be evacuated, which would cost Braskem R $ 850 million in potential payments to these residents and R $ 750 million in expenses to "permanently" cease Braskem's salt mining.
In that news, the company's share price fell $ 0.59, or 6%, to close at $ 8.93 per share on July 9, 2020, harming investors.
The complaint filed in this class action alleges that throughout the class period, defendants made materially false and / or misleading statements and did not disclose material adverse facts about the business, business and prospects of the company. Specifically, the defendants have failed to advise investors: (1) that Braskem's salt mining was unsafe and posed a significant threat to surrounding areas, including nearly two thousand properties; (2) that the foregoing is foreseeable to increase the risk that Braskem will face remedial action, including, but not limited to, increased government and / or regulatory oversight or enforcement, significant monetary and reputational damage, and / or the permanent closure of one or more of its Salt mining; (3) that accordingly, Braskem's salt mining revenues were unsustainable; (4) that Braskem downplayed the actual scope and severity of the company's liability in relation to its salt mining; and (5) that as a result, the Company's public statements have been materially false and misleading at all relevant times.
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If you purchased Braskem securities during the class period, you can ask the court to appoint the lead plaintiff no later than October 26, 2020. You don't need to take any action at this point to be a member of the class. You can keep an attorney of your choice or you can take no action and remain an absent member of the class. If you have purchased Braskem securities, have information or would like to learn more about these claims, or if you have any questions about this announcement or your rights or interests in relation to these matters, please contact Frank R. Cruz of the Frank R. Law Firms. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067, 310-914-5007, by email at email@example.com or visit our website at www.frankcruzlaw.com. When inquiring by email, please include your mailing address, telephone number and number of shares purchased.
This press release may be viewed as a solicitor advertisement in some jurisdictions under applicable laws and ethical rules.
The Frank R. Cruz Law Firms, Los Angeles
Frank R. Cruz, 310-914-5007