SHAREHOLDER CLASS ACTION
BHP BILLITON
(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

// Register //

If you acquired shares in BHP Billiton on any of the ASX, LSE or JSE during the period from 21 October 2013 to 9 November 2015 you are a group member in the class action, Impiombato v BHP Billiton Limited. The proceeding, filed on 31 May 2018, seeks recovery of investor losses incurred up to 30 November 2015.

On 3 August 2018, the Court made common fund orders ensuring that participating group members will receive at least 82% of any settlement or judgment in their favour.

You do not need to take any action at this time in order to participate in the class action. However, if you wish to be kept informed and receive ongoing legal advice at no additional cost, you may register by clicking the ‘register’ button and following the instructions to complete your registration.

REGISTER

// 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 shareholders throughout this period, during which BHP’s combined market capitalisation fell by more than $25 billion.

// Allegations //

The class action seeks to recover some of the loss in share value suffered by investors 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 claim alleges that:

  • BHP violated its continuous disclosure obligations by failing to inform of the market of the imminent risk of the failure of the Fundão dam and the likely catastrophic consequences of the dam’s failure;
  • BHP engaged in misleading and deceptive conduct in telling the market that it put safety and health first in its operations, while repeatedly failing to take basic safety precautions; and
  • Shareholders suffered loss or damage as a result of BHP’s actions.

The class action is the product of nearly a year of work researching the history of the construction of the Fundão dam, the causes of the dam’s collapse, and BHP’s knowledge of the issues with the dam. The claim benefits from the extensive review of Brazilian documents and technical reports, engagement of experts and translators, and intensive legal work by senior barristers.

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 does 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 shares on the ASX, LSE or JSE are not prevented from participating in this class action.

// Funding and Costs //

As a result of the Court’s making of common fund orders, you will receive at least 82% of any settlement or award in your favour. There are no additional legal costs or fees. The Court will ultimately determine what commission is reasonable compensation for the funder, G&E KTMC Funding LLC (G&E KTMC), however it will be less than 18% of any settlement or award. These terms are substantially better than those typically ordered in Australian shareholder class actions. G&E KTMC is backed by Grant & Eisenhofer and Kessler Topaz Meltzer & Check, two of the United States’ most successful and respected shareholder litigation firms.

If you purchased shares of BHP on the ASX, LSE, or JSE between 21 October 2013 to 9 November 2015, you do not need to take any further action at this time to participate. However, if you wish to receive ongoing information and legal advice in this matter, click the ‘register’ button and follow the instructions to complete the registration process. Registering requires no commitment and no cost.

REGISTER