Pogust Goodhead founder 'abruptly replaced' as CEO, FT reports

Tom Goodhead, the founder and CEO of class action firm Pogust Goodhead, has been replaced as chief executive amid "tension" with the firm’s financial backer, US hedge fund Gramercy, according to the Financial Times.

Chief operating officer Alicia Alinia has reportedly taken over on an interim basis, though Goodhead will remain on the firm's board. New board members include former Dentons global chair Howard Morris.

Biggest class action in English legal history

The move comes just months after the conclusion of the landmark trial in Municipio de Mariana v BHP, the UK’s largest ever class action, which Pogust Goodhead is leading on behalf of more than 600,000 Brazilian claimants affected by the 2015 Fundão dam collapse. The claim is worth up to £34 billion with the High Court judgment on liability still pending.

In a conversation earlier this year on The Non-Billable Podcast, Goodhead revealed the scale of the operation required to deliver the BHP claim, including working with 3,000 Brazilian lawyers and employing 400 people on the ground at its peak.

The firm secured a record $552 million investment deal with Gramercy in 2023 - believed to be the single largest litigation finance deal ever. Goodhead told us that at one point Pogust Goodhead was burning $5-6 million a month, spanning not only the BHP litigation but multiple global class actions, including claims against major car manufacturers over emissions scandals.

Late last year, the firm cut around 20% of its staff to adjust for what it expected would be a multi-year grind with no near-term settlement in the BHP case, according to Goodhead.

In a statement reported by the Gazette, the firm confirmed the new board appointments, adding: "The firm's funders continue to believe in the strength of the litigation and will continue to provide funding to support its efforts."

Gramercy was approached for comment.