Glancy Prongay & Murray LLP Reminds Investors of Looming Deadline in the Class Action Lawsuit Against Braskem S.A. (BAK)

LOS ANGELES, Oct. 21, 2020 /PRNewswire/ -- Glancy Prongay & Murray LLP ("GPM") 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 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").

If you suffered a loss on your Braskem investments or would like to inquire about potentially pursuing claims to recover your loss under the federal securities laws, you can submit your contact information at https://www.glancylaw.com/cases/braskem-sa/. You can also contact Charles H. Linehan, of GPM at 310-201-9150, Toll-Free at 888-773-9224, or via email at [email protected] to learn more about your rights.

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 or otherwise acquired Braskem securities during the Class Period, you may move the Court no later than October 26, 2020 to request appointment as lead plaintiff in this putative class action lawsuit. 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 the pending class action lawsuit, please contact Charles Linehan, Esquire, of GPM, 1925 Century Park East, Suite 2100, Los Angeles, California 90067 at 310-201-9150, Toll-Free at 888-773-9224, by email to [email protected], or visit our website at www.glancylaw.com.  If you inquire by email please include your mailing address, telephone number and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Contacts

Glancy Prongay & Murray LLP, Los Angeles
Charles Linehan, 310-201-9150 or 888-773-9224
[email protected] 
www.glancylaw.com

SOURCE Glancy Prongay & Murray LLP