Settlement of In re BHP Billiton Limited Securities Litigation
Civil Action No. 1:16-cv-01445-NRB (S.D.N.Y.)
The parties have reached a settlement of this action, which provides for the payment of $50,000,000 for the benefit of eligible Class Members. In short, Lead Plaintiffs City of Birmingham Retirement and Relief System and City of Birmingham Firemen’s and Policemen’s Supplemental Pension System alleged that the defendants, BHP Billiton Limited and BHP Billiton plc (together, “BHP”), made actionable misstatements regarding their commitment to safety and their risk management controls, and omitted facts needed to make these statements not misleading.
The Complaint alleges, by the start of the Class Period, BHP had approved a dramatic increase in iron-ore production at Samarco Mineração S.A. (“Samarco”), a joint venture operated in Brazil that BHP co-owned. This increase resulted in record volumes of mining waste, called tailings, which Samarco stored in three main dams. On November 5, 2015, Samarco’s Fundão dam burst, unleashing a flood of tailings that destroyed the nearby town of Bento Rodrigues, killed 19 people, and caused immense ecological damage. In the aftermath of the collapse – widely regarded as the worst environmental disaster in Brazil’s history – the price of BHP’s American Depositary Receipts (“ADR”) declined substantially as the truth was allegedly exposed regarding BHP’s Brazilian operations.
The Class consists of all purchasers of the ADRs between September 25, 2014 and November 30, 2015, inclusive, with certain exclusions detailed in the Stipulation of Settlement and Final Judgment and Order available at the links listed below.
The Court approved the settlement on April 10, 2019.
If you have any questions about the settlement or the litigation, please contact Rick Nelson at 1-800-449-4900.