10:10 AM EDT, 08/01/2025 (MT Newswires) -- (Updates with BHP Group's ( BHP ) response in fourth and fifth paragraphs.)

BHP Group ( BHP ) and Vale (VALE) are facing a lawsuit in London filed by law firm Pogust Goodhead, which accused the companies of "cheating" their way out of legal fees by arranging settlements with plaintiffs in an ongoing case over the collapse of a dam in Brazil, Reuters reported Thursday.

Pogust Goodhead represents more than 600,000 claimants in the ongoing case over a 2015 dam collapse in Mariana, Brazil, according to the report. Lawyers for the firm alleged that the companies urged the claimants to "settle their claims at far below their true value," Reuters said.

Reuters cited a BHP spokesperson as saying the company rejects and will contest the allegations.

A BHP spokesperson said in an email to MT Newswires that "we reject PG's claims and allegations in their entirety and dispute their factual and legal basis. These allegations and threatened claims are entirely without merit and BHP rejects and will vigorously contest them," the spokesman said.

"Since 2015, approximately US$11.6 billion has been spent on reparation and compensation, and payment to public authorities. Another approximately US$20.4 billion is scheduled to be disbursed, following the 20-year commitment signed with Brazilian authorities," the spokesperson added.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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