BHP Group (ASX:BHP) confirmed that the English High Court has found it liable for the collapse of the Fundao dam, owned and operated by Samarco Mineraçao, a non-operated joint venture between unit BHP Billiton Brasil and Vale, in Brazil, in 2015, according to a Monday filing with the Australian bourse.

The Court found the company liable on the basis that it is a 'polluter' under Brazilian environmental law and at fault under the Brazilian civil code, the filing said.

The Court also found that the waivers and releases signed by claimants who have already received compensation in Brazil are valid, the filing added.

In 2018, proceedings were filed in the UK against BHP Group and BHP Group (UK) by a group of Brazilian plaintiffs seeking indemnification for alleged damages arising from the failure of the dam.

The company expects the Court's findings to reduce the size and value of the claims in the UK group action.

It also intends to appeal the decision and continue to defend the UK group action, the company added.

A second stage trial set between October 2026 and March 2027 will decide if the losses claimed by the claimants were caused by the dam failure.

Following any appeal, a stage three trial may be needed for each remaining claimant to prove their individual damages before the company.

Shares of the company fell 2% in recent Monday trade.