April 28, 2021 - An amended complaint was filed.

August 25, 2020 - An investor in shares of Braskem S.A. (NYSE: BAK) filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by Braskem S.A. in connection with certain allegedly false and misleading statements made between May 6, 2016, and July 8, 2020.

Brazil based Braskem S.A., together with its subsidiaries, produces and sells thermoplastic resins. On April 2, 2019, media sources and, later, Braskem S.A., disclosed that the Company had been sued by local authorities in connection with a geological event it had purportedly caused in the state of Alagoas, Brazil.

Specifically, Braskem S.A.disclosed, in relevant part, that the Company ha[d] become aware, through the media, of a lawsuit filed against it by the Public Prosecutor's Office and the Public Defender's Office, both of the State of Alagoas. Braskem S.A.disclosed that the lawsuits were requesting the freezing of amounts and assets in a total of approximately R$6.7 billion [i.e., 6.7 billion reais] to guarantee any potential damages owed to the general public affected by the geological phenomenon which occurred in districts near the rock salt extraction area in Maceió.

Then, on January 3, 2020, Braskem S.A. disclosed that it had executed an agreement related to the aforementioned geological event that subjected the Company to further liabilities. Specifically, the Company disclosed that on January 3, 2020, it had executed an agreement with the Alagoas State Public Defender's Office ( DPE ), the Federal Prosecution Office ( MPF ), the Alagoas State Prosecution Office ( MPE ), and the Federal Public Defender's Office ( DPU ) to support the relocation and indemnification of residents of the areas at risk located in the districts of Mutange, Bom Parto, Pinheiro and Bebedouro of Maceió, Alagoas, as established in the agreement, which will be submitted to judicial ratification.

Among other conditions, the Company advised that preliminarily estimates for the relocation established in the agreement involve approximately 17,000 people, with estimates to be recognized as provisions at approximately R$1.7 billion for the implementation of the relocation, and R$1 billion to close the Company's salt wells.

Finally, on July 9, 2020, during pre-market hours, Braskem S.A. disclosed that authorities in northeastern Brazil had advised the Company that the geological damage from its salt mining operations was more widespread than initial estimates. Specifically, among other things, 1,918 properties needed to be evacuated because of the geological event associated with Braskem's mining operations, and Braskem estimated that moving the residents would cost the Company an additional R$850 million in possible payments to those residents, with another additional R$750 million in expenses to definitively shut down Braskem's salt mining operations.

According to the complaint the plaintiff alleges on behalf of purchasers of Braskem S.A. (NYSE: BAK) common shares between May 6, 2016, and July 8, 2020, that the defendants violated Federal Securities Laws.

More specifically, the plaintiff claims that between May 6, 2016, and July 8, 2020, the Defendants made false and/or misleading statements and/or failed to disclose that Braskem's salt mining operations were unsafe and presented a significant danger to surrounding areas, including nearly two thousand properties, 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, that accordingly, earnings generated from Braskem's salt mining operations were unsustainable, that Braskem downplayed the true scope and severity of the Company's liability with respect to its salt mining operations, and that as a result, the Company's public statements were materially false and misleading at all relevant times.