Two prominent litigation funders, Gramercy Funds Management and North Wall Capital, are now entangled in a dispute over the direction of the £36 billion ($48.8 billion) lawsuit against BHP Group Ltd and Vale SA concerning the 2015 Fundão dam collapse in Brazil. The legal battle, representing over 600,000 Brazilians, is moving into a new phase after BHP was found liable in November, leading to a clash over which law firms should continue to lead the case.
Gramercy, a significant financial backer of the litigation, supports the continued involvement of Pogust Goodhead and Quinn Emanuel. In contrast, North Wall Capital is financing a rival legal team, Edward McCourt & Company and Bailey Glasser International, which is attempting to replace Pogust Goodhead. This upheaval follows a complex history, including Gramercy refinancing a €178 million ($207 million) loan North Wall had previously provided to Pogust Goodhead in 2023. The dispute also coincides with the ousting of Pogust Goodhead's former chief, Thomas Goodhead, who was accused by Gramercy of lavish spending and expense account abuses, allegations he denies, claiming he was the victim of a boardroom coup.
Adding another layer of complexity, the client committee representing the affected Brazilian communities recently announced it had fired Pogust Goodhead as its legal representative, a claim the firm disputes. This move further fuels the struggle for control over the litigation, with North Wall's backed team poised to potentially take over. The 2015 dam collapse killed 19 people, and while a $31.1 billion settlement was reached with Brazilian authorities in 2024, it did not cover the UK case. BHP has provisioned approximately $5.2 billion for Samarco-related costs, with about 240,000 claimants in the UK lawsuit having already received compensation in Brazil, potentially reducing the overall claim size.
The London High Court ruled BHP liable for the disaster, stating that the decision to continue raising the dam despite safety concerns was the direct cause of its collapse. BHP was refused permission to appeal this ruling in May 2026. The ongoing dispute among funders and legal teams highlights the significant financial stakes involved in litigation finance, where funders aim for a share of any winnings. Pogust Goodhead previously alleged that a $30.3 billion compensation agreement signed in October 2024 prevented claimants from discussing the deal or paying its legal fees, and it had incurred $1 billion in borrowing costs to finance the English case.
