US hedge fund Gramercy has set a new record for the $16bn litigation funding market with the provision of a $552.5m loan to UK law firm Pogust Goodhead backing separate suits against miners BHP and Vale and 14 global carmakers in mass environmental claims.

Pogust Goodhead is currently pursuing the UK’s biggest opt-in class action lawsuit on behalf of 700,000 Brazilian claimants affected by the 2015 collapse of the Fundão tailings dam at the Samarco Mariana mine complex, with the trial scheduled to begin in London in October 2024.

The suit is seeking compensation for damages caused by the disaster to homes and livelihoods.

In addition, the firm is involved in more than a dozen lawsuits on behalf of one million UK customers of 14 carmakers involved in the so-called 'dieselgate' scandal. The firm has already reached a £193m settlement with Volkswagen, and has a trial against Mercedes scheduled for next year.

Gramercy, which has around $6bn in assets under management, is better known for its investments in emerging markets, particularly in Russia and Argentina. The litigation loan arrangement also includes co-investments from some of the fund’s clients.