Rookie lawyer who sniffed an opportunity with class action funding now finds himself out of a job
A brief look into the world of class action lawsuits leads quickly to one firm whose name has rarely left the headlines: Pogust Goodhead. Founded in 2018, the firm describes itself as one that holds corporate giants to account on behalf of under-represented groups.
Yet, internal divisions and disputes have cast a shadow over its success. Thomas Goodhead, the firm’s co-founder and once its public face, was ousted in August and left the firm officially in September in what he described as a “boardroom coup”. He now stands at the centre of a controversy that threatens to unravel the very image of the firm he helped build.
Educated at a comprehensive school in Newport, South Wales, Thomas Goodhead went on to study politics, philosophy and economics (PPE) at the University of Oxford. After completing a master’s in politics and education policy at the University of Cambridge, he was called to the Bar in 2010 and began his career as a barrister working on personal injury claims.
Thomas Goodhead met Harris Pogust, an experienced American disputes lawyer, and together they decided to embark on the ambitious journey of founding SPG Law in 2018 — later known as Pogust Goodhead — a law firm focused on large-scale class action claims. In the process they raised a reported £450 million in funding from US asset management fund Gramercy. Goodhead, now 43, was only 35 at the time.
What followed was nothing short of meteoric. Within just a few years, the firm made a name for itself through high-profile cases such an emissions claims against Volkswagen and a data breach scandal against British Airways and Uber, positioning itself as a major player in the class action space. Goodhead, media savvy and charismatic, quickly became something of a lightning rod for both admiration and controversy.
For the uninitiated, class actions have become one of the most talked-about areas in modern law, particularly when combined with the often-contentious world of litigation funding. While litigation funding can open the doors of the justice system to those who could otherwise never afford to enter, critics argue that it also creates the perfect opportunity for lawyers and funders to chase profits rather than justice.
Pogust Goodhead is currently leading a huge class action lawsuit against BHP and other defendants over the Mariana dam disaster, a catastrophic mining collapse in Brazil that released millions of tonnes of toxic sludge into the Doce River, killing 19 people and displacing thousands. The case represents over 620,000 claimants, ranging from individual victims and small communities to large institutional bodies such as churches and local authorities.
Yet these big instructions come amid turmoil at the top of the firm. In August Goodhead was ousted over alleged disagreements with the firm’s funder, US asset management fund Gramercy. Meanwhile, his co-founder, Pogust, left in April. The firm has since appointed an interim CEO, Alicia Alinia, and new board members and announced the launch of an internal investigation into governance issues surrounding Goodhead’s tenure, spearheaded by law firm DLA Piper.
The investigative report, that The Times claims to have seen, alleges that there was “excessive and uncontrolled spending directed and led by Goodhead”. Particular attention has been paid to the apparent dissonance between Goodhead’s spending habits in Brazil — including luxury accommodation and high-end travel — and the grim realities faced by many of the firm’s clients affected by the disaster. One source told The Times: “Tom wanted to present us as a Magic Circle-esque firm, where the lawyers are having a great time. On the superyacht, flying in helicopters over the damaged towns and cities or communities. But you’re supposed to be client-first. It’s not a jolly out to Brazil.”
However, Goodhead has denied these claims. In a statement issued to Legal Cheek, he said:
“I am immensely proud of building a firm that has fought for justice on behalf of 1.5 million people. We were an incredible group of people changing the world. I am saddened that so many former colleagues have also now left the firm or the cases we worked on.
“I went from being a solo self-employed barrister, working on personal injury claims, to the head of a global law firm, taking on huge corporations in a few short years. We raised $1bn of funding and at its peak we were a firm of 700 people.
“We won substantial victories, including the Volkswagen emissions litigation and the British Airways and Uber data breach cases.
“When you build a firm that takes on powerful corporate defendants, you make enemies – and I was removed from the firm in a boardroom coup. It followed the inevitable tensions that emerge in high-stakes international litigations where billions of dollars are at stake. I fought for client interests above all else at all times.
“PG was full of entrepreneurial spirit, which drove our achievements. We pursued all staff complaints robustly and thoroughly. I have never ignored or concealed an allegation of serious misconduct.
“Pogust Goodhead was financed by commercial loans, not client funding. No client or ring‑fenced litigation funds were ever used for my personal expenditure. Any expenses were fully settled under my director’s loan account of which our funders were fully aware. I am still owed £2.7m by the firm for money I injected to cover staff payroll before I left.
“I went to Brazil over 70 times and was co-ordinating 400 staff on the ground and 3,000 local lawyers. It was often necessary to use helicopters and private aviation to reach inaccessible areas. I regularly stayed in business hotels in Rio which was the centre of our operation. Any corporate hospitality was in line with other city law firms of our size.
“My commitment has always been to the clients. My focus remains on the over 600,000 victims of the Mariana dam disaster, who I hope will see justice soon with the 10th anniversary approaching.”
Meanwhile, in a statement responding to the investigation, a Pogust Goodhead spokesperson said: “The alleged conduct is deeply concerning and does not reflect the values or standards of the firm today. Pogust Goodhead is now run by an experienced independent board and leadership team with a robust governance structure in place.”
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