The major global law firm backed by the largest-ever litigation funding deal plans to initiate up to three class action lawsuits in Australia before the end of this year, with seven more expected within the next 18 months.
British barrister Thomas Goodhead 42 (pictured) is the managing partner of Pogust Goodhead, a London-based ‘social and environmental justice’ law firm founded by Goodhead and American lawyer Harris Pogust in 2018.
Pogust Goodhead is actively involved in one of the largest class action cases of its kind involving over 700000 clients and alleged victims mounted against BHP and Vale, two of the world’s largest mining companies, concerning the Mariana dam disaster in Brazil.
The firm opened its Sydney office this year and has dismissed criticism that his lawyers were becoming wealthy by taking up to 50 per cent of damages awarded to class action members, labeling such criticism as “bullshit” in a report in the Australian Financial Review.
Goodhead, whose London-based firm opened a Sydney office in February with the intent of targeting Australian multinational corporations, makes no apologies for profiting substantially from suing big companies.
This expansion into Australia and Latin America was enabled by a loan worth over $1 billion, including interest, from the U.S. hedge fund Gramercy.
Soon after Pogust Goodhead’s arrival, major business groups voiced concerns on the front page of the Australian Financial Review about global capital funding local litigation, alleging profit-driven speculators were behind it.
Goodhead stated he was unsurprised by the criticism given the “age-old tension” between companies and plaintiff lawyers, as well as it being a contentious political issue locally.
He argued firms like his would be unnecessary if companies didn’t cause environmental disasters, release defective products, or engage in misleading practices.
The first Australian lawsuits will reportedly target automakers over the Dieselgate emissions scandal. Pogust Goodhead previously settled with Volkswagen for £193 million in 2022 and has over a dozen similar European cases pending. Gramercy expects to fully recoup its loan from just “a handful” of automotive company settlements.
However, Goodhead noted the Australian pipeline covers much more, including claims by local and overseas parties allegedly harmed by large ASX-listed firms.
Pogust Goodhead’s biggest case seeks up to $54.6 billion from mining giant BHP over the 2015 Mariana dam disaster in Brazil on behalf of over 700,000 claimants. While the firm could get up to 30% of any settlement, Goodhead considered actually receiving $10 billion or more as “almost inconceivable.”
Defending the firm’s potential profits, Goodhead was unapologetic, noting that BHP’s legal bill with Slaughter and May for just the initial trial exceeds £100 million. He questioned why elite corporate defense lawyers earning millions per year face no such criticism.
Goodhead expects to rapidly hire more Australian lawyers once the initial lawsuits commence, paying competitive rates on par with top investment bankers.
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