High profile class action firm Pogust Goodhead has robustly defended itself from allegations of misconduct over its former chief executive's spending at the firm.
A spokesperson said it had ‘put this chapter firmly behind us’ following a report from The Times alleging that Tom Goodhead had improperly used investment funds intended for litigation on personal spending, including private jets and helicopters. Goodhead denies the allegations against him.
An internal investigation and report into alleged misconduct was commissioned by the firm’s new board, according to The Times. The new board was appointed after Goodhead, the firm’s co-founder, was replaced as chief executive and his appointment as director terminated over the summer. Three new board directors were appointed, including new chief executive Alicia Alinia, who served as chief operating officer at Pogust Goodhead since 2022.
A spokesperson for Pogust Goodhead said: 'The individuals concerned are no longer employed by Pogust Goodhead, following decisive action taken by the board. The alleged conduct is deeply concerning and does not reflect the values or standards of the firm today. Pogust Goodhead is now run by an experienced independent board and leadership team with a robust governance structure in place.
‘We have put this chapter firmly behind us, and we remain fully focused on supporting our people and securing the best possible outcomes for our clients.’
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Pogust Goodhead is currently awaiting judgment in litigation against mining giant BHP over the 2015 Fundão dam collapse in Minas Gerais, Brazil. In October, its application to the High Cout to be replaced as co-lead in the Pan NOx ‘dieselgate’ class action was refused by Lady Justice Cockerill, sitting as a judge of the High Court.
At the time of making the application the firm said it was a ‘pragmatic step made to ensure the recent speculation and misinformation about Pogust Goodhead was not a distraction from the trial itself’.
Goodhead told the Gazette he had been ousted from the firm in a ‘boardroom coup’ and any corporate hospitality during his time at the firm ‘was in line with other city firms’ of Pogust Goodhead’s size.
He said: ‘I am immensely proud of building a firm that has fought for justice on behalf of 1.5 million people. We were an incredible group of people changing the world. I am saddened that so many former colleagues have also now left the firm or the cases we worked on.
‘I went from being a solo self-employed barrister, working on personal injury claims, to the head of a global law firm, taking on huge corporations in a few short years. We raised $1bn of funding and at its peak we were a firm of 700 people. We won substantial victories, including the Volkswagen emissions litigation and the British Airways and Uber data breach cases.
‘When you build a firm that takes on powerful corporate defendants, you make enemies – and I was removed from the firm in a boardroom coup. It followed the inevitable tensions that emerge in high-stakes international litigations where billions of dollars are at stake. I fought for client interests above all else at all times.
‘PG was full of entrepreneurial spirit, which drove our achievements. We pursued all staff complaints robustly and thoroughly. I have never ignored or concealed an allegation of serious misconduct.
‘Pogust Goodhead was financed by commercial loans, not client funding. No client or ring-fenced litigation funds were ever used for my personal expenditure. Any expenses were fully settled under my director’s loan account of which our funders were fully aware. I am still owed £2.7m by the firm for money I injected to cover staff payroll before I left.
‘I went to Brazil over 70 times and was co-ordinating 400 staff on the ground and 3,000 local lawyers. It was often necessary to use helicopters and private aviation to reach inaccessible areas. I regularly stayed in business hotels in Rio which was the centre of our operation. Any corporate hospitality was in line with other city law firms of our size.
‘My commitment has always been to the clients. My focus remains on the over 600,000 victims of the Mariana dam disaster, who I hope will see justice soon with the 10th anniversary approaching.’
