Pogust Goodhead, the high-profile class action specialist law firm co-founded by London barrister Thomas Goodhead (pictured), is reportedly undergoing significant staff reductions, affecting up to 20 percent of its workforce. The firm, known for its ambitious approach to taking on major corporations in large-scale litigation, is facing the challenges inherent in managing massive group claims.
According to reports, between 40 and 50 jobs are likely to be cut in London, with a similar proportion of staff reductions expected in Brazil. The cuts are said to affect both business operations and legal departments, impacting approximately 100 employees, primarily in call center roles.
Founded just six years ago, Pogust Goodhead has quickly risen to prominence through its involvement in high-profile cases, including massive group diesel claims against car manufacturers and the London litigation over the Mariana dam disaster in Brazil. The firm’s rapid growth, its large-scale US investment and aggressive approach to litigation have been notable features of its short history.
Earlier this year, Pogust Goodhead made headlines with its equity program, which promised potential earnings of up to £2 million for lawyers, depending on the outcomes of major cases.
However, the nature of large group claims presents challenges in terms of regular income streams during ongoing litigation.
The firm’s expansion has been largely funded by commercial loans, including significant backing from US-based emerging markets investor Gramercy. This funding strategy has allowed Pogust Goodhead to take on some of the largest companies in the world, as stated by the firm’s co-founder, Tom Goodhead.
The firm has also been active with its legal action in Australia, as we reported earlier this year.
Despite the current staff reductions, Pogust Goodhead maintains that it is positioning itself to continue providing access to justice for both existing and future clients. The firm is known for its specialization in environmental law, consumer rights, and international litigation, with a portfolio of 28 matters, the smallest of which is valued at £10 million.
Tom Goodhead, the firm’s founder, has acknowledged the challenges posed by defendants seeking to delay cases, but asserts that litigation funding is in place to counter such tactics[1]. He emphasized the firm’s disruptive approach in the legal industry, stating, “We have made a lot of friends and probably a lot of enemies as well – we have deliberately tried to be disruptive”.
As Pogust Goodhead navigates these changes, it continues to handle significant cases, including the ongoing London High Court hearing in the Mariana dam case, which is scheduled to run into February next year.
