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. Layers 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.

BHP did not immediately respond to MT Newswires' request for a comment.

(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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