BHP CLASS ACTION (ASX: BHP | LSE: BLT | JSE: BIL)

It does not seem credible, neither technically nor morally

that the value of the human, cultural and physical environment in Brazil

should be worth less than in other countries.

— Federal Prosecutors, Quoted on ft.com

//  PROPOSED SETTLEMENT  //

A conditional settlement, subject to the approval of the Court, of AUD$110 million, has been reached in the BHP Class Action (Proposed Settlement). This is inclusive of legal fees, expenses, disbursements, any funding commission and interest, to resolve the claims of all Group Members.The Proposed Settlement is without admission of liability by BHP Group Limited.

Class action settlements, including this Proposed Settlement, are subject to approval by the Federal Court of Australia. The Court will consider whether to approve the Proposed Settlement as fair and reasonable, and in the interests of all Group Members as a whole. At 10:15am AEDT on 5 December 2025, the Court will hear the application to approve the Proposed Settlement and the proposed scheme for distribution of the settlement (Settlement Approval Hearing). You are entitled to attend the hearing if you wish.

On 31 October 2025, the Federal Court of Australia made orders approving the content and distribution of a Notice of Proposed Settlement that provides information about the Proposed Settlement and explains the rights that Group Members have regarding the Proposed Settlement. Group Members should read this Notice carefully as it will affect their rights. A copy of the Notice of Proposed Settlement is available in the 'Key documents' section below.

The BHP Class Action, known as Vince Impiombato, and Klemweb Nominees Pty Ltd as trustee for Klemweb Superannuation Fund v BHP Group Ltd (BHP Class Action), has been the subject of a Court ordered opt out and registration process. The opt out and claim registration deadline was 4pm (AEST) on 31 May 2024.

As is explained in the Notice of Proposed Settlement, the Joint Applicants intend to apply for an order from the Court as part of the Settlement Approval Hearing which, if made, will mean only Registered Group Members are entitled to share in the benefits from the Proposed Settlement. Registered Group Members will be sent a further notice (Notice of Estimated Distribution) that contains an estimate of their entitlement to compensation under the Proposed Settlement. The estimate in the Notice of Estimated Distribution is not a final amount and is subject to change.

You are a Registered Group Member if:

  1. you entered into a litigation funding agreement with G&E KTMC before 4.00pm (AEDT) on 31 May 2024;
  2. you entered into a retainer and costs agreement with Maurice Blackburn before 4.00pm (AEDT) on 31 May 2024;
  3. you submitted your claim registration before 4.00pm (AEDT) on 31 May 2024 through the online portal accessible through the webpage https://www.bhpclassaction.com; or
  4. your claim registration was submitted after 4.00pm (AEDT) on 31 May 2024, but by orders of the Court dated 11 July 2025 or 31 October 2025 you have been deemed to be a Registered Group Member.

Answers to frequently asked questions about the Proposed Settlement of the BHP Class Action are available in the 'Key documents' section below.

Summary of Key Dates

  • 9 September 2025: Proposed Settlement announced.
  • 31 October 2025 to 3 November 2025: distribution of Court approved Notice of Proposed Settlement Notice
  • 31 October 2025 to 3 November 2025: distribution of Court approved Notice of Estimated Distribution to Registered Group Members.
  • 4.00pm AEDT on 28 November 2025: Deadline for Group Members to object to Proposed Settlement.
  • 10:15am AEDT on 5 December 2025: Settlement Approval Hearing.

// Key Documents //

Further information about the BHP Class Action and the Court ordered opt out and registration process is available by clicking on the links below –

  1. Answers to Frequently Asked Questions for Group Members
  2. Notice of Proposed Settlement
  3. Orders made on 31 October 2025
  4. Third Further Amended Consolidated Statement of Claim, dated 25 March 2025
  5. BHP's Amended Defence dated 27 June 2025
  6. Important Notice to Registered Group Members
  7. Opt Out and Registration Notice
  8. Orders made on 13 March 2024

// Background //

On 5 November 2015, the Fundão tailings dam at the Germano mine in Minas Gerais, Brazil collapsed in the largest tailings dam rupture ever recorded. The mudflow killed 19 people and has had a catastrophic and enduring impact on the surrounding communities and the environment.

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The mudflow created by the dam rupture ultimately travelled 600 kilometres to the ocean, creating a toxic brown plume visible from space. 700 people lost their homes, 8,500 fishermen lost their livelihoods, and 400,000 people lost access to fresh water. It is the worst environmental disaster in Brazil's history.

The Germano mine is operated by Samarco Mineração SA, a joint venture of BHP and Vale SA. BHP is an Anglo-Australian owned multinational and the world's largest diversified mining and mineral resources company.

In the period that followed the dam collapse, BHP's stock price plunged across all markets, falling 22% in Sydney and 23% in London and Johannesburg between 5 November 2015 and 30 November 2015. The class action will seek to recover losses to BHP Ltd and BHP Plc shareholders throughout this period, during which BHP's combined market capitalisation fell by more than $25 billion.

// Allegations //

The BHP Class Action sought recovery of investor losses incurred up to 30 November 2015 by BHP Ltd and BHP Plc shareholders because of BHP's alleged failure to disclose material information to the market and its alleged misleading or deceptive conduct.

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The BHP Class Action alleges that BHP Group Ltd:

  1. contravened its continuous disclosure obligations between 8 August 2012 and 9 November 2015 (inclusive) (Claim Period) by failing to properly inform the Australian Securities Exchange (ASX) of BHP's knowledge of the Fundão dam (located in the Germano mine in Minas Gerais, Brazil, operated by Samarco Mineração SA, a non-operated joint venture between BHP Billiton Brasil Ltda and Vale SA in Brazil) being at risk of failure, and knowledge that if the dam failed serious adverse human, environmental, and financial consequences would likely result;
  2. (engaged in misleading or deceptive conduct by representing to the ASX (by publishing in its annual reports between FY11 – FY15) that:
    1. the primary consideration in every aspect of BHP's business was the safety of its people and the safety and sustainability of the environment and the communities in which it, and its subsidiaries, carried on business; and
    2. BHP had effective systems and processes in place to identify and effectively manage risks to the safety of its people and the safety and sustainability of the environment and the communities in which it, and its subsidiaries, carried on business, including the Samarco mining operation.

The BHP Class Action alleges that investors who acquired BHP Ltd or BHP Plc shares in the Claim Period are entitled to compensation for loss and damage caused by or resulting from the conduct of BHP Ltd as alleged in the Third Further Amended Consolidated Statement of Claim dated 25 March 2025.

The allegations are denied by BHP Ltd. BHP Ltd defended the class action and the Proposed Settlement acknowledges that BHP Ltd makes no admission of liability or any other admissions beyond those specifically pleaded in the pleadings filed with the Court in the Proceeding.

Full details of the allegations made by the Joint Applicants and of BHP Ltd's defence against those allegations are set out in the Third Further Amended Consolidated Statement of Claim and the Defence to the Third Further Amended Consolidated Statement of Claim, which can be found in the 'Key documents' section above.

A class action against BHP in the United States on behalf of investors that acquired New York Stock Exchange (NYSE) listed American Depository Shares settled on 9 August 2018. The US proceeding did not (and cannot) recover losses suffered in respect of shares traded on the ASX, LSE or JSE. Investors that participated in the US proceeding, who also acquired BHP Ltd and/or BHP Plc shares may also participate in this class action.

// Funding and Costs //

The BHP Class Action is partially funded by G&E KTMC Funding LLC.

G&E KTMC Funding LLC is backed by Grant & Eisenhofer and Kessler Topaz Meltzer & Check, two of the United States' most successful and respected shareholder litigation firms.

Pursuant to the financial terms and funding terms for the BHP Class Action, G&E KTMC is exclusively responsible for adverse costs orders and security for costs and has agreed to pay:

  1. all disbursements incurred in the BHP Class Action;
  2. Phi Finney McDonald under its current terms of engagement for performing the legal work;
  3. premiums associated with after-the-event insurance arrangements procured for the BHP Class Action

(together G&E KTMC's Expenses).

Maurice Blackburn is performing its legal work on a No Win, No Fee basis, charging a 6.25% uplift in the event the class action is successful.

The Joint Applicants will ask the intend to apply to the Court to make an order that both Funded and Unfunded Group Members to the Consolidated Proceeding contribute a pro-rata amount to the costs incurred in conducting the consolidated proceeding and to pay G&E KTMC a percentage of any compensation to which the Funded and Unfunded Group Members become entitled as commission for funding the BHP Class Action. These orders are called "common fund orders" (CFOs).

The Joint Applicants intend to seek common fund orders for:

  1. reimbursement of legal costs inclusive of uplift, disbursements and other litigation expenses incurred by the Joint Applicants in the BHP Class Action;
  2. reasonable settlement administration costs;
  3. reimbursement of costs and premiums paid or payable under the after-the-event insurance arrangements procured for the BHP Class Action; and
  4. a percentage commission to G&E KTMC of up to 27.5% of the "net recovery", calculated on the basis of the total settlement sum minus G&E KTMC's expenses from its agreement to pay all disbursements incurred in the BHP Class Action, Phi Finney McDonald under its current terms of engagement for performing legal work ,and premiums associated with after-the-event insurance arrangements procured for the BHP Class Action.

    The final rate of the common fund order to be sought cannot be calculated exactly at this time. It will be substantially lower than 27.5% of the net recovery, to ensure that the total proposed deductions to the Joint Applicants' lawyers and G&E KTMC do not exceed 50% of the Settlement Sum (before taking into account accrued interest).

PRIVACY POLICY // DISCLAIMER

Liability limited by a scheme approved under Professional Standards Legislation.

Phi Finney McDonald Pty Ltd ACN 618 727 905 is a proprietary company constituted under the Corporations Act 2001 and registered in Victoria. Its registered office address is Level 3, 325 Flinders Lane, Melbourne VIC 3000. The firm is authorised and regulated by the Victoria Legal Services Board and Commission.

Phi Finney McDonald respectfully acknowledges the traditional owners of the land on which we come together to meet, learn, and work. We recognise the continuing connection of all Aboriginal and Torres Strait Islander Peoples to their Country and we pay our respects to their Elders past, present and emerging.

https://www.mauriceblackburn.com.au/class-actions/

PRIVACY POLICY

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