According to the law firm press release, Braskem S.A. is a Brazilian petrochemical company that is the largest petrochemicals producer in Latin America. Braskem is also the largest producer of thermoplastic resins in the Americas. Braskem buys naphtha, which accounts for half of its production costs and is the main ingredient for making petrochemicals in Brazil, from Petróleo Brasileiro S.A. – Petrobras (“Petrobras”) under long-term agreements. Petrobras provides approximately 70% of Braskem’s naphtha needs.
According to the Complaint, the truth began to emerge on March 11, 2015, when a report from a São Paulo newspaper, Folha de S. Paolo, implicated Braskem in the corruption scandal surrounding Petrobras. On this news, Braskem ADRs fell over 20%, or $1.80 per ADR, on March 11, 2015.
Plaintiffs filed a consolidated Complaint on November 6, 2015. This was followed by the filing of an amended Complaint on May 20, 2016.
On September 14, 2017, the parties entered into a Stipulation of Settlement. The Settlement was preliminarily approved by the Court on September 15. On February 21, 2018, the Court issued an Order awarding attorneys' fees and expenses, granted final approval of the Settlement, and entered Final Judgment. On November 19, the Court issued an Order for distribution of the Settlement funds to Authorized Claimants.
On February 23, 2022, the Court granted Lead Plaintiff's Motion for an Order directing a cy pres distribution of the residual net Settlement fund.