Global law firm Pogust Goodhead has borrowed more ahead of its blockbuster BHP class action, following a leadership shake-up that saw its co-founder replaced as CEO.
Global law firm Pogust Goodhead, which opened its doors in Sydney in February 2024, has secured fresh funding from US hedge fund Gramercy as it awaits a pivotal UK court ruling that could decide whether its $55 billion class action against mining giant BHP succeeds – or further exposes the firm to financial risk.
Already carrying $837 million in debt under a 2023 agreement with its financial backer, Pogust Goodhead has now secured an additional lifeline from Gramercy, reportedly worth £65 million ($136 million), as reported by Financial Times.
Lawyers Weekly contacted Pogust Goodhead to confirm this amount, but as of publication, the firm has not responded.
The firm’s total obligations to the hedge fund, including interest, are reported to exceed $1.7 billion, with interest accruing at more than 10 per cent per year, according to The Australian.
In a statement, the global law firm said that the latest financial injection was a “clear endorsement of our current litigation” and would provide the resources to “support our unrelenting mission to deliver justice”.
Pogust Goodhead also sought to downplay concerns over its dependence on hedge fund financing, insisting it retains “management and forensic independence from all funders and retain[s] complete control over the strategic and operational direction of our cases”.
The funding injection comes after weeks of upheaval that saw Tom Goodhead, co-founder of the plaintiff firm in 2008 and its former CEO, replaced by COO Alicia Alinia.
The global law firm confirmed in a statement that Goodhead, who is currently “on leave of absence”, remains on the board, while Alinia has stepped in as interim CEO.
Adding to the leadership overhaul, Pogust Goodhead also appointed two new directors to its board: former Dentons chief Howard Morris and ex-Cadwalader litigator Joseph Moreno.
The timing of the leadership shake-up and funding injection comes as Pogust Goodhead pursues a landmark $70 billion class action against BHP on behalf of more than 600,000 people affected by the 2015 Samarco tailings dam disaster.
The case went to trial in October last year, but the claim was complicated by an alternative $50 billion compensation deal struck between BHP and the Brazilian government.
Although the liability phase concluded in March, the judgment is still pending, and the second stage to determine damages is not scheduled to begin until October 2026.
Financial Times has reported that BHP and its joint venture partner Vale reportedly made a $1.4 billion settlement offer in June, but no agreement was reached.
