Pogust Goodhead founder and ex-CEO exits firm as turbulence continues

Tom Goodhead, co-founder of Pogust Goodhead, has resigned as a director and left the firm in the latest twist in a turbulent few months for the class action specialist.

A Companies House filing this week confirmed his directorship at PGMBM Ltd, the firm’s parent company, has been terminated. It comes just weeks after he was replaced as chief executive by former Slater & Gordon executive Alicia Alinia, who stepped up from her role as COO.

Turbulent summer

Goodhead’s exit caps a turbulent period for the firm which is leading the £34 billion class action against mining giant BHP over the 2015 Mariana dam collapse in Brazil - the biggest group action in UK legal history.

In August, reports emerged he had been pushed out as CEO amid tensions with the firm’s main financial backer, US hedge fund Gramercy. Pogust Goodhead struck a record $552 million investment deal with Gramercy in 2023 - understood to be the largest litigation finance package ever.

Filings subsequently revealed that "turnaround consultant" Huw Dolphin had taken control of the company, holding more than 75% of the shares and the power to hire and fire directors, replacing Goodhead as the "person with significant control" at Companies House.

While Goodhead remained a director, the leadership shake-up also saw the addition of new board members, including former Dentons global chair Howard Morris. And, later in August, it emerged Gramercy had extended an additional $65 million credit line to Pogust Goodhead which the firm said was a "clear endorsement of our current litigation".

Australia fallout

The turbulence has spread overseas. Reports this week say Pogust Goodhead has also closed its Sydney office, although the firm has distanced itself from the operation saying it had no legal or contractual ties to the UK business, according to the Gazette. The Australian said the office left behind unpaid bills "likely in the millions."

The firm’s giant cases come with equally heavyweight cost pressures. Speaking on The Non-Billable Podcast earlier this year, Goodhead revealed the firm was burning through $5-6 million a month, spanning the BHP litigation and other global class actions, including claims against major car manufacturers over emissions scandals.

The liability trial in the BHP case ended in March. The judgment has yet to be handed down.