LOS ANGELES, Oct. 15, 2020 /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that a class action lawsuit has been filed on behalf of persons and entities that purchased or otherwise acquired Braskem S.A. ("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 lead plaintiff motion.
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On April 2, 2019, media reported that Braskem was sued by local authorities in connection with a geological event that the Company had purportedly caused in Alagoas, Brazil. The same day, the Company disclosed that the lawsuits were "requesting the freezing of amounts and assets in a total of approximately R$6.7 billion to guarantee any potential damages owed to the general public."
On this news, the Company's share price fell $1.60, or 6%, over two trading sessions to close at $25.14 per share on April 3, 2020.
Then, on July 9, 2020, before the market opened, Braskem disclosed that the geological damage from its salt mining operations was more widespread than initial estimates. Specifically, the Company disclosed that 1,918 properties needed to be evacuated, which would cost Braskem R$850 million in possible payments to those residents and R$750 million in expenses to "definitively" shut down Braskem's salt mining operations.
On this news, the Company's share price fell $0.59, or 6%, to close at $8.93 per share on July 9, 2020, thereby damaging investors.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Braskem's salt mining operations were unsafe and presented a significant danger to surrounding areas, including nearly two thousand properties; (2) that the foregoing foreseeably increased the risk that Braskem would be subjected to remedial liabilities, including, but not limited to, increased governmental and/or regulatory oversight or enforcement, significant monetary and reputational damage, and/or the permanent closure of one or more of its salt mining operations; (3) that, accordingly, earnings generated from Braskem's salt mining operations were unsustainable; (4) that Braskem downplayed the true scope and severity of the Company's liability with respect to its salt mining operations; and (5) that, as a result, the Company's public statements were materially false and misleading at all relevant times.
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If you purchased Braskem securities during the Class Period, you may move the Court no later than October 26, 2020 to ask the Court to appoint you as lead plaintiff. To be a member of the Class you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the Class. If you purchased Braskem securities, 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 Frank R. Cruz, of The Law Offices of Frank R. Cruz, 1999 Avenue of the Stars, Suite 1100, Los Angeles, California 90067 at 310-914-5007, by email to email@example.com, or visit our website at www.frankcruzlaw.com. If you inquire by email please include your mailing address, telephone number, and number of shares purchased.
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SOURCE The Law Offices of Frank R. Cruz, Los Angeles