Key facts
- Pogust Goodhead is being sued for £84 million by its funder, Vinci SPS Capital Gestão de Recursos Ltda.
- The lawsuit alleges breaches of obligations concerning litigation proceeds from the BHP group action.
- Vinci SPS claims Pogust Goodhead failed to secure consent before disbursing funds to barristers and insurers.
- An interim payment of £42.7m received by Pogust Goodhead is at the center of the dispute.
- Pogust Goodhead is being defended by DAC Beachcroft.
City law firm Pogust Goodhead, formerly known as PGMBM, is embroiled in an £84 million lawsuit initiated by its own funder, Vinci SPS Capital Gestão de Recursos Ltda. The dispute centers on allegations that Pogust Goodhead breached its obligations by disbursing litigation proceeds from the high-profile case against mining giant BHP without obtaining the required consent from its lenders.
Vinci SPS claims that Pogust Goodhead has failed to transfer an interim payment of £42.7 million, received into its client account, to a designated receivables account as legally required. The Brazilian financial services firm alleges that Pogust Goodhead delayed opening this account for over four and a half years. Pogust Goodhead, however, asserts it cannot move the funds until it issues an invoice to claimants, which it claims is contingent on discharging a trust in favor of its after-the-event (ATE) insurers. Vinci SPS rejects this stance, asserting its rights take precedence.
The BHP case, a record-breaking group action concerning the 2015 dam disaster in Brazil that killed 19 people, recently saw the High Court find BHP liable. The next phase, focusing on causation and loss, is scheduled for April 2027. Pogust Goodhead is being defended in the current lawsuit by DAC Beachcroft.
This is not the first legal challenge for Pogust Goodhead. The firm previously partnered with US investment firm Gramercy Funds Management for a $552.5 million litigation funding deal and later an additional $150 million facility. Additionally, Pogust Goodhead was sued in May 2025 by another law firm, Seladore Legal, for £2.2 million over alleged unpaid legal bills.