Braskem Shares Fall 7% Amid Securities Fraud Probe
Investigations follow disclosures on environmental liabilities and a review of the company's capital structure, renewing governance concerns.
Shares of Braskem S.A. (NYSE: BAK), the Brazilian petrochemical giant, tumbled nearly 7% in the latest market session amid revelations that the company is facing multiple investigations for potential . The sell-off reflects growing investor anxiety over legal uncertainties and the company's financial transparency.
The probes, initiated by several law firms, were triggered by recent company announcements that have eroded market confidence. On September 26, 2025, Braskem disclosed it had hired financial and legal advisors to explore alternatives for optimizing its capital structure. The news, which hinted at potential financial distress, sent its American Depositary Receipt (ADR) price plunging by 14.7% in a single day.
This followed a November 2023 disclosure of a $203 million liability connected to environmental damages from its rock-salt mining operations in Maceió, Brazil, which had also previously unsettled investors. Law firms are now scrutinizing whether Braskem made misleading statements or failed to disclose critical information regarding its financial health and liabilities.
This is not the first time Braskem has faced significant legal and ethical challenges. The company was a central figure in a massive corruption scandal that resulted in a in 2016 to resolve violations of the Foreign Corrupt Practices Act (FCPA). U.S. authorities alleged the company participated in a scheme to conceal millions in illicit bribes to Brazilian government officials to secure favorable business terms.
The renewed legal scrutiny raises serious questions about Braskem's corporate governance and whether past compliance measures were sufficient. With multiple on behalf of investors, the company faces a period of heightened uncertainty as the market awaits clarity on its financial footing and potential legal consequences.