BHP, a global mining company, has been served class action proceeding in the Federal Court of Australia regarding the 2015 Samarco dam failure in Brazil. The collapse of the dam caused a mudslide which leveled small communities and contaminated a river with waste that it had contained from a nearby iron ore mine. The Company did not specify who had filed the class action lawsuit.
The class action lawsuit alleges that BHP failed to disclose the risk of the dam’s failure to the stock market, and misled investors over the Company’s safety guarantees.
Samarco and Pranet companies, Vale SA and BHP, signed a deal with Brazilian authorities in June to settle a USD 5.3 Billion lawsuit over the failure. BHP has also entered an agreement to fund USD 215 Million in financial support for the Renova Foundation, a nonprofit institution created to help victims of the disaster.
BHP said last week that it is expecting to record a charge of USD 650 Million in its full-year results due to the dam incident. According to analyst’s expectations, this figure is at the lower end of expectations.
Over 3,000 investors have signed up to the lawsuit.