The £36 billion claim against mining giant BHP has just taken a significant step forward with City law firm Quinn Emanuel joining the litigation team. This partnership is a major development in one of the UK's largest class action lawsuits, which seeks compensation for the devastating 2015 collapse of the Fundão dam in Brazil.
The catastrophic incident resulted in the deaths of 19 individuals, destroyed numerous villages, and caused widespread environmental damage. The lawsuit, led by Pogust Goodhead, centres on claims against BHP and its joint-venture partner Vale, with over 200,000 Brazilian citizens, hundreds of businesses, and 25 local municipalities initially involved.
Pogust Goodhead has confirmed a strategic partnership with Quinn Emanuel, which will work alongside the firm to secure compensation for the claimants. This collaboration comes as the firm has successfully secured an additional $150 million (£114 million) in funding specifically for the litigation. The new investment is provided by New York-based hedge fund Gramercy Funds Management, which initially committed $85 million (£65 million) to the case.
The UK court proceedings have a long history, dating back to 2018 when BHP sought to have the lawsuit dismissed due to alleged duplication of proceedings in Brazil. However, the Court of Appeal allowed the claim to proceed to trial in 2022 and subsequently found BHP responsible for the failings in November 2023. The mining giant's subsequent appeal was refused by the Court of Appeal in May this year, solidifying the liability finding.
Despite these developments, reports have emerged of internal challenges at Pogust Goodhead, including a number of lawyer resignations and concerns about Gramercy's involvement in the firm's cases. Senior partner Tom Ainsworth recused himself from the case due to these concerns, which centre on the source of a £500 million investment made by Gramercy in 2023.