Tata Steel Discloses $1.6 Billion Dutch Class Action Over Emissions
The claim, filed under Dutch collective action law, alleges health risks and property value losses near the IJmuiden steel plant.
Topics
News
- India Faces Lower Risk of AI Job Disruption Than the West, Says IT Secretary
- Tata Steel Discloses $1.6 Billion Dutch Class Action Over Emissions
- Nvidia Licenses Groq’s Inference Tech, Hires Leadership
- HCLTech Deepens Software Push With Three Acquisitions in a Week
- Isro Launches BlueBird Block 2 in Heaviest Commercial Mission Yet
- OpenAI Softens ChatGPT’s Tone While Scaling for an AI Showdown
Tata Steel Ltd has disclosed that a Dutch non-profit organization has filed a collective lawsuit seeking about €1.4 billion (about $1.6 billion) in compensation from its Netherlands subsidiaries over alleged environmental and health impacts linked to emissions from its IJmuiden operations.
In a regulatory filing to Indian stock exchanges on 25 December, Tata Steel said Stichting Frisse Wind.nu served a writ of summons on 19 December on Tata Steel Nederland B.V. and Tata Steel IJmuiden B.V., initiating proceedings before the District Court of North Holland.
The action has been brought under the Netherlands’ Act on Collective Settlement of Mass Claims (WAMCA), with the NGO claiming to act on behalf of residents living near Tata Steel’s facilities in Velsen-Noord.
The filing alleges that emissions of hazardous or harmful substances from the steel plant have increased residents’ susceptibility to health issues and reduced enjoyment of homes, with average property values in the region said to lag comparable areas.
According to Tata Steel’s disclosure, the NGO is seeking approximately €1.4 billion in compensation. The company said the claimant has not provided supporting evidence for its assertions and described the claims as unsubstantiated and speculative, adding that it has already identified substantial grounds to contest both the admissibility and merits of the case.
Tata Steel said proceedings under the WAMCA framework are conducted in two stages where admissibility is followed by merits, with each phase expected to take two to three years, implying that any debate on compensation is not expected in the near term.
The filing also noted that the collective action is being financed by third-party litigation funders Redbreast Associates N.V. and Omni Bridgeway S.A., with compensation structures capped at 25% of any funds recovered or a multiple of the financiers’ investment.
Tata Steel said its Netherlands unit remains committed to environmental improvement and community engagement, pointing to investments made under its Roadmap+ program and its Green Steel Plan agreed with the Dutch government.
The company said it continues to work on reducing particulate emissions, nitrogen oxides, sulphur dioxide, odours and noise, and believes the NGO’s claim lacks merit.
In September, Tata Steel had announced plans for an emissions reduction project at its Netherlands operations costing up to €6.5 billion, with the Dutch state expected to contribute as much as €2 billion.
