A class action with more than 29,000 claimants against BHP Billiton over a 2015 Brazilian dam collapse that killed 19 people will be the one to proceed, a Federal Court judge has ruled.
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The mining giant was facing three separate class actions over allegations company directors were, or should have been, aware of the risk of the dam collapse at the Samarco iron ore mine as far back as 2012.
It's also alleged the company failed to meet its disclosure obligations to the Australian stock exchange about the risks at any time before the deadly collapse on November 9, 2015.
BHP is defending the claims.
Federal Court Justice Mark Moshinsky ruled in Melbourne on Tuesday that the first proceeding by Vince Impiombato, which includes 29,610 shareholders, could proceed as the open class.
That action covers a period from October 2013 until the collapse on November 9, 2015.
It alleges BHP, which holds a 50 per cent interest in the Samarco mining and mineral resource company through BHP Brasil, knew about issues with the dam during that period, including allegations of seepage and sinkholes in mid to late-2012 and the appearance of "extensive cracks" in August 2014.
The village of Bento Rodrigues was wiped out when the dam in Minas Gerais state, in southeastern Brazil, collapsed, killing 19 and displacing 700.
Drinking water for hundreds of thousands of people was affected by mud and debris and the Atlantic Ocean was also contaminated.
Justice Moshinsky noted the overlap in the three proceedings in determining a class action involving the Klemweb Superannuation Fund be permanently stayed, noting the period it covers is wholly encompassed by the larger Impiombato proceedings.
Klemweb's claim has 197 applicants who will be covered by other proceedings.
Justice Moshinsky declined their suggestion to continue as a closed class.
"To have both proceedings continue side-by-side would be likely to result in considerable duplication of legal work and thus increase the overall cost of the proceeding," he said.
"While this would benefit the lawyers, it is unlikely to benefit the group members."
A claim by the Los Angeles County Employees Retirement Association was stayed until September next year.
That claim involves allegations going back to August 2012 and Justice Moshinsky said he would allow consideration of whether the Impiombato proceedings be extended to also cover the additional months.
A case management hearing will be held in the Impiombato proceedings at a later date.
BHP has already paid out millions of dollars in compensation and remediation.
A further multi-billion dollar class action involving 240,000 claimants was filed in the UK last month, while the company agreed to settle a US class action for $US50 million ($A70 million), without admission of liability, in August.
Australian Associated Press
