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 | Investigations Dataset

Stanford Foreign Corrupt Practices Act Clearinghouse a Collaboration with Sullivan & Cromwell LLP

Investigations Dataset

 
Investigation into Braskem's Activities in Brazil re: Petrobras · Braskem S.A.

Information & Summary

Investigation into Braskem's Activities in Brazil re: Petrobras

Related FCPA Matter:   Odebrecht and Braskem's Involvement in Multiple Countries from 2001 to 2016 Information

Information & Summary

Investigation Name:    Investigation into Braskem's Activities in Brazil re: Petrobras

Trend:    Petrobras

Type of investigation:    Internal, SEC, DOJ

Other Agencies Investigating/Assisting with SEC/DOJ Investigation:   

  • Brazilian Securities and Exchange Commision (CVM)
  • Swiss Office of the Attorney General

Whistleblower:    Unknown

Summary

Braskem, S.A., a corporation headquartered and incorporated in Brazil, was the largest petrochemical company in the Americas, with significant interests in the petrochemical and thermoplastic products industries. Braskem's shares were registered with the SEC and traded on the New York Stock Exchange.

As disclosed in its May 9, 2016 20-F filing, declarations made by defendants in lawsuits filed against third parties were made public in March 2015, in which Braskem and two of its former executive officers were cited in allegations of supposed improper payments between 2006 and 2012 to benefit the company in raw material supply agreements entered into with Petrobras.

As a result of these allegations, Braskem’s Management and Board of Directors approved an internal plan for investigation to be carried out by outside counsel, under the supervision of an Ad Hoc Committee created specifically for that purpose.

Braskem voluntarily disclosed the internal investigation to the SEC, DOJ and the Exchange and Securities Commission of Brazil (CVM), and cooperated with all agencies, providing information and documents.

On December 16, 2016, Braskem and Odebrecht S.A., a Brazilian conglomerate that indirectly owned 38.1% of the total shares of Braskem but controlled 50.11% of Braskem's voting shares, resolved FCPA-related claims with both the SEC and the DOJ.

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