Residents living near Tata Steel in IJmuiden have filed a mass legal claim against the steelmaker, seeking compensation for health damage and falling house prices that could total around €1.4 billion.

The claim, filed on Friday by the foundation Frisse Wind and first mooted two years ago, is being brought on behalf of some 330,000 people living in the wider area around the plant.

The foundation says Tata Steel’s operations have led to increased health risks, stress and anxiety, persistent nuisance from dust, noise and odour, and a loss of quality of life.

According to the summons, residents are also suffering financial damage because average house prices in the region “demonstrably lag behind those in comparable areas”. The case one of three currently pending against the steel giant.

Frisse Wind says its priorities are improving the situation in the future and securing compensation for past harm. “We are now focused on the latter,” said board member and personal injury lawyer John Beer. Foundation founder Jaap Vennik said it was unacceptable that pollution “reaches into the bedrooms of our children”.

On Friday, the environmental authority for the North Sea canal area imposed a penalty payment on Tata Steel for exceeding several emission limits, including hydrogen fluoride and heavy metals such as chromium and nickel.

The penalty amounts to €2.4 million, and the company has two weeks to end the violations.

Not all local residents support the mass claim, Nieuwsuur reported on Friday.  Some point to Tata Steel’s importance as a major employer in the region and fear economic decline if the company were to disappear.

Tata Steel said in a brief response that it would study the claim. The company said it would continue to work on additional measures to reduce emissions and “contribute to a better living environment”.