Core Viewpoint - BHP Group Ltd faces legal liability for the 2025 Fundão dam failure as determined by the English High Court, leading to a decline in share price, with future compensation assessments expected in 2028 or 2029 [2][5]. Group 1: Legal and Financial Implications - The English High Court ruling found BHP liable under Brazilian law for the dam failure, with BHP planning to appeal the decision [2]. - BHP has already supported extensive remediation efforts, having spent US$1 billion in FY26 and expecting cash outflows of US$2.2 billion for FY26 and US$0.5 billion for FY27 [5][6]. - Since 2015, BHP, Vale, and Samarco have provided US$13.4 billion for reparations, with US$6.3 billion already disbursed [6]. Group 2: Compensation and Settlements - A US$32 billion agreement was reached for a "full and final" settlement of key claims related to the dam failure, with over 610,000 people compensated [3][4]. - BHP believes that releases from claimants should reduce the size and value of claims in the UK case, which it views as duplicative of prior remediation efforts [4][6]. Group 3: Future Legal Proceedings - A second stage trial is scheduled between October 2026 and March 2027 to determine if losses claimed were caused by the dam failure, with a potential third trial unlikely before 2028 [7]. - The market reaction to the news has been negative but not significant, as BHP has largely accounted for the compensation in its financials [8].