Welcome to the Braskem, S.A. Securities Settlement Website
This website contains only a summary of the terms of the proposed Settlement regarding a class action lawsuit entitled In re Braskem Securities Litigation, Case No. 15-cv-5132-PAE (the “Action”). The Court in charge of the case is the United States District Court for the Southern District of New York. By Order dated September 15, 2017, the Court appointed the Boilermaker-Blacksmith National Pension Trust (“Boilermaker) as the Class Representative, and Cohen Milstein Sellers & Toll PLLC as Lead Counsel. Please refer to the documents within the Court Documents section for more detailed information regarding the Settlement.
If you satisfy the below requirement, you are a Settlement Class Member:
If you purchased or acquired the American Depositary Receipts of Braskem, S.A., between July 15, 2010 and March 11, 2015, both dates Inclusive, you could receive a payment from a class action settlement.
The initial complaint in this case was filed on July 1, 2015, by plaintiff Douglas W. Peters, and asserted, among other things, that in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"), Defendants misled investors in connection with an alleged bribery scheme involving Braskem and Petrobras.
On September 8, 2015, the Court consolidated several related cases and appointed Boilermakers as Lead Plaintiff.
Lead Plaintiff, through Lead Counsel, then conducted an extensive investigation into Braskem’s involvement in that alleged bribery scheme. Because the underlying events largely took place in Brazil, and the underlying documents were largely written in Portuguese, Lead Counsel hired several Portuguese speakers to assist with the investigation. The investigation involved, involved, among other things, interviewing witnesses in Brazil, researching Braskem’s disclosures to the investing community and its statements more generally, and compiling and analyzing the results of numerous legal proceedings in Brazil. The investigation eventually led to the filing of two amended complaints.
The first amended complaint was styled the “Consolidated Class Action Complaint” (“CAC”), was filed on November 6, 2015, and named Braskem, Fadigas, Gradin, Drehmer, da Silva, and Odebrecht as defendants (collectively, the “CAC Defendants”).
The second amended complaint was styled the “Second Amended Consolidated Class Action Complaint (“SAC”), was filed on May 20, 2016, and named Braskem, Fadigas, Gradin, and Odebrecht as defendants (collectively, the “SAC Defendants”), but not Drehmer or da Silva.
On March 30, 2017, the Court granted in part the SAC Defendants’ motion to dismiss the SAC, and dismissed Odebrecht and Gradin from the case and certain of Lead Plaintiff’s claims against the remaining SAC Defendants, but held that Lead Plaintiff could move forward on its claim that Braskem misled investors by failing to disclose the influence that the alleged bribery scheme had on the pricing of naphtha, an important component of Braskem’s business.
The parties began discovery shortly thereafter, under the terms of a Court-order confidentiality stipulation.
The parties then agreed to participate in a mediation of the Action before mediator David Geronemus, Esq. of Judicial Arbitration and Mediation Services (“JAMS”). On July 19, 2017, following that mediation, the parties agreed, in principle, to settle the Action for $10 million, subject to the negotiation of a mutually acceptable settlement agreement, the production of certain confirmatory discovery, and other conditions including approval of the settlement by the Court.
Shortly thereafter, the parties engaged in said discovery, including the production by Defendants of certain documents, all of which were designated as confidential in accordance with the above-mentioned Court order. The parties thereafter proceed to negotiate a formal written Stipulation and Agreement of Settlement, including essential settlement terms that had not yet negotiated or agreed upon at the mediation.
|YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT|
|REMAIN A MEMBER OF THE SETTLEMENT CLASS AND FILE A PROOF OF CLAIM FORM.||This is the only way to receive a payment. If you wish to obtain a payment as a member of the Settlement Class, you will need to file a proof of claim form (the “Proof of Claim Form”), postmarked no later than January 16, 2018.|
|EXCLUDE YOURSELF FROM THE SETTLEMENT CLASS BY SUBMITTING A WRITTEN REQUEST FOR EXCLUSION SO THAT IT IS RECEIVED NO LATER THAN JANUARY 22, 2018.||If you exclude yourself from the Settlement Class, you will receive no payment pursuant to this Settlement. You may be able to seek recovery against the Defendants or other Released Parties through other litigation.|
|OBJECT TO THE SETTLEMENT BY SUBMITTING A WRITTEN OBJECTION SO THAT IT IS FILED WITH THE COURT NO LATER THAN JANUARY 31, 2018 AND RECEIVED BY COUNSEL NO LATER THAN FEBRUARY 7, 2018||You may attend the hearing to speak in Court about the fairness of the Settlement, the proposed Plan of Allocation, or Lead Counsel’s request for attorneys’ fees and reimbursement of Litigation Expenses. You cannot object to the Settlement unless you are a member of the Settlement Class and do not validly exclude yourself.|
|DO NOTHING||Receive no payment, remain a Settlement Class Member, give up your rights to seek recovery against the Defendants and the other Released Parties through other litigation and be bound by the Judgment entered by the Court if it approves the Settlement, including the release of the Released Claims.|