Pogust Goodhead threatens action over 'unlawful conspiracy' to undermine Brazilian dam case

Class action specialist Pogust Goodhead has accused mining giant BHP of a ‘coordinated campaign’ to undermine the English claim over a Brazilian dam collapse in 2015. It seeking £1.3bn in damages over what it alleges is a 'deliberate attempt to cause Pogust Goodhead harm'. 

In a pre-action letter circulated to the media, the firm said BHP and other defendants in the Fundão dam litigation ‘have combined to take unlawful action to undermine the English proceedings’.

Pogust Goodhead also claims damages to ‘compensate it for time and costs expended’ by the firm, or on its behalf, in investigating the alleged conspiracy.

The pre-action letter states: ‘Pogust Goodhead’s primary case is that, but for the conspiracy between the defendants and the unlawful acts carried out pursuant to that conspiracy, all of the Fundão claimants would have continued their claims in the English proceedings and the Dutch proceedings to trial and been awarded the damages that they sought in those proceedings in full.

‘The damages awarded would have been significantly greater than the amount of compensation paid to those Fundão claimants that have (or will) settle their claims pursuant to the historic settlements.’

A spokesperson for BHP said it rejected Pogust’s claims and allegations ‘in their entirety and dispute their factual and legal basis’.

She added: ‘These allegations and threatened claims are entirely without merit and BHP rejects and will vigorously contest them.

‘Compensation and other reparatory measures have been delivered by Samarco and Renova since 2015 through various programmes under the supervision of the Brazilian courts. These programs have been set up and implemented in Brazil for Brazilians and agreed with local authorities there, most recently under the October 2024 Brazil agreement.

‘We continue to believe Brazil is the most appropriate, effective, and efficient place for compensation for the Fundão dam failure from Samarco to be delivered.’

The 57-page letter before action, sent by Orrick, Herrington & Sutcliffe (UK) LLP, on behalf of Pogust Goodhead is the latest twist in the the largest mass lawsuit ever to come before the High Court of England and Wales. The London hearing finished in March 2025.

Mrs Justice O’Farrell reserved her judgment following the 13-week trial which centred on liability over the 2015 Fundão dam collapse in Minas Gerais, Brazil, which killed 19 people and caused massive pollution to water sources. BHP denies liability.