Tata Steel is facing a collective action lawsuit in the Netherlands related to alleged damages from its operations in Velsen-Noord. The lawsuit, initiated by Stichting Frisse Wind.nu (SFW), claims that Tata Steel’s TSN operations have caused environmental damage, including hazardous emissions. SFW is seeking approximately EUR 1.4 billion in compensation. Tata Steel is prepared to defend itself vigorously, asserting the claim is unsubstantiated.
Litigation Overview
Tata Steel is facing legal action initiated by Stichting Frisse Wind.nu (SFW) concerning its operations in Velsen-Noord, Netherlands. The case involves two subsidiaries, Tata Steel Nederland B.V. and Tata Steel IJmuiden B.V. (TSN), and is filed in the District Court North Holland, location Haarlem. SFW initiated proceedings under the Dutch Act on Collective Settlement of Mass Claims (WAMCA).
Claims and Allegations
The core of the litigation revolves around allegations that TSN’s operations have caused damages due to emissions of hazardous and/or harmful substances. SFW is acting on behalf of residents living near the TSN facility in Velsen-Noord, claiming the operations led to environmental damages and adverse health effects.
Financial Implications and Claims
SFW is seeking approximately EUR 1.4 billion in compensation, citing increased susceptibility to various health issues and a decline in home values in the affected region. Tata Steel disputes these claims, asserting they are unsubstantiated and lack supporting evidence. The class action is reportedly financed by third-party funders, Redbreast Associates N.V. and Omni Bridgeway S.A.
Tata Steel’s Response
Tata Steel intends to defend itself against the claim. The company believes SFW faces considerable challenges regarding both the admissibility and merits of the case. While the proceedings are under the WAMCA regime and conducted in two phases (admissibility and merits), each phase will approximately take 2 to 3 years to conclude. They strongly argue that they will defend themselves against these claims.
Company’s Commitment to Environmental Standards
Tata Steel emphasizes its commitment to environmental preservation and community well-being. The company highlighted that health and a clean-living environment remain key priorities and has achieved significant improvements through substantial investments. Furthermore, TSN ranks highly among global steel producers in terms of CO2 efficiency. They will continue to invest and work on initiatives to enhance the healthy living environment, reduce the impact of operations and continuous improvement beyond legal requirements. Tata Steel believes that given these efforts, SFW’s claim lacks merit.
Source: BSE
