Vale SA facing new US$3.8b class action over Brazil dam collapse
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The news: Proceedings against Vale SA and Samarco Iron Ore Europe have been brought by law firms Pogust Goodhead and Lemstra Van der Korst in the Netherlands, by almost 80,000 claimants over the 2015 Mariana dam collapse in Brazil.
The numbers: Pogust Goodhead said it would request compensation of over USD3.8 billion ($5.82 billion) in the Dutch case for claimants including 77,000 individuals, almost 1,000 businesses and seven municipalities. The dam collapse killed 19 people and polluted hundreds of kilometres of waterways in south-east Brazil.
The context: The Dutch claim was brought by a not-for-profit foundation in the Netherlands, and was launched after lawyers attached the shares that Vale holds in its Dutch subsidiary. The asset attachment was made to ensure assets are ringfenced in the event of a successful outcome.
The Mariana dam was operated by Samarco, a joint venture between Vale of Brazil and BHP.
In 2018, Pogust Goodhead launched a class action in the UK representing 700,000 claimants against Vale SA and its project partner BHP over the collapse, which is due to start in October.
In January, Samarco, Vale and BHP were ordered to pay USD9.7 billion in compensation for the dam collapse by a Brazilian court, both Vale and BHP have said they will consider appealing.
What they said: CEO and global managing partner of Pogust Goodhead, Tom Goodhead, said: “More than eight years after the worst environmental disaster in Brazil’s history, it is appalling that many victims have still not received adequate redress for the damages caused to them.
“The claims being brought in the Netherlands against Vale and Samarco Iron Ore Europe BV for their role in the disaster show that delaying justice and making low value offers in Brazil will not stop the victims from demanding justice. We are glad to be instructed to hold Vale and Samarco’s subsidiary to account for their role in the disaster.”
The sources: Business Wire, Financial Times
