Deadline Reminder: The Law Offices of Howard G. Smith Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Braskem S.A. (BAK)
Oct 21, 2020 2:42 PM ET
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Law Offices of Howard G. Smith reminds investors of the upcoming October 26, 2020 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased Braskem S.A. securities between May 6, 2016 and July 8, 2020, inclusive (the "Class Period").
Investors suffering losses on their Braskem investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to [email protected]
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 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.
If you purchased or otherwise acquired Braskem securities, you may move the Court no later than October 26, 2020 to ask the Court to appoint you as lead plaintiff if you meet certain legal requirements. To be a member of the class action 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 action. If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, toll-free at (888) 638-4847, or by email to [email protected], or visit our website at www.howardsmithlaw.com.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
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