Pogust Goodhead defends governance as founder rejects 'lavish' spending claims

Class action specialist Pogust Goodhead has defended its leadership and governance following founder and former CEO Tom Goodhead’s recent exit amid allegations of lavish personal spending using investor funds.

Investigation findings

A report published by The Times this week revealed findings from an internal investigation commissioned by Pogust Goodhead’s new board and conducted by DLA Piper.

The interim report alleges "excessive and uncontrolled spending directed and led by Goodhead", including the use of private jets and helicopters, staff yacht parties, and luxury accommodation, with total travel and hospitality spending topping £5 million between 2023 and 2024.

In a statement shared with Non-Billable, Goodhead said his spending was necessary to conduct business and that "any corporate hospitality was in line with other law City firms of our size."

The report also points to alleged breaches of funding agreements with Gramercy, the US-based hedge fund that invested $552 million in the firm in 2023, and NorthWall Capital, a previous litigation funder.

Goodhead said: "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."

Amid claims of a "toxic culture" at the firm, Goodhead said: "We pursued all staff complaints robustly and thoroughly. I have never ignored or concealed an allegation of serious misconduct."

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."

'Boardroom coup'

Goodhead was ousted as CEO in the summer and has since left the firm. He denies any wrongdoing, and says he was the victim of a "boardroom coup".

In his statement, Goodhead said: "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."

He was replaced by Alicia Alinia, formerly COO, who has pledged a "culture reset" and reaffirmed the firm’s commitment to strong governance and client-focused litigation.

What now?

It is understood that Goodhead’s conduct has been reported to the SRA and the Bar Standards Board, although it is not known whether he is under investigation.

The firm says it has "put this chapter firmly behind us," adding that it remains focused on securing justice for its clients through some of the world’s most complex class actions.

The decision on liability in the £34 billion class action against BHP is due any week now after the trial concluded in March. Pogust Goodhead is bringing the claim on behalf of more than 600,000 victims who suffered when the Mariana dam collapsed in 2015.