Pogust Goodhead built its name representing hundreds of thousands of consumers and communities against corporate giants, from Volkswagen and Mercedes to mining group BHP.
Yet the London-based firm has spent the past year fighting a very different battle, one involving an ousted founder, allegations of lavish spending, and a mountain of debt.
A Firm Built on Mass Claims and Big Promises
Founded in 2018 by Tom Goodhead and Harris Pogust, the firm rose to prominence through its My Diesel Claim campaign, signing up more than a million drivers affected by the Dieselgate emissions scandal, alongside its multi-billion-pound case against BHP over Brazil’s Mariana dam disaster.
Even before the current crisis, some of that growth came with friction. Reports emerged of Dieselgate customers challenging legal deductions from their compensation, after a paperwork error temporarily raised the firm’s fee cap from 35 to 50 percent, prompting complaints, calls for the firm to open its books, and calls for regulatory scrutiny from affected drivers.
That friction turned into full-blown turmoil last summer, when Goodhead was suddenly removed as chief executive following a reported clash with the firm’s investors.
The Allegations: Private Jets, Yachts and a Multimillion-Pound Loan
An internal investigation led by law firm DLA Piper reportedly found evidence of excessive and uncontrolled spending during Goodhead’s tenure. Insiders described frequent private jet and helicopter travel, business-class flights, luxury hotel stays, and staff yacht parties, all funded through the firm’s landmark Gramercy loan.
Combined travel and hospitality costs are said to have exceeded five million pounds between 2023 and 2024. The report also pointed to a 4.2 million pound director’s loan to Goodhead that was later written off, along with possible breaches of funding agreements with Gramercy and an earlier backer, NorthWall Capital.
Millions in Debt and a Firm Under New Control
The spending allegations have surfaced alongside a deteriorating financial picture. Overdue accounts reportedly showed a 2022 pre-tax loss of close to 292 million pounds and liabilities above 500 million pounds, while 2023 filings showed total debts climbing to 97.5 million pounds from just 11 million pounds the year before.
Auditors are said to have flagged material uncertainty over the firm’s ability to continue as a going concern. Gramercy has since injected a further 65 million dollars, and restructuring consultant Huw Dolphin has taken on majority voting control, with former COO Alicia Alinia stepping in as interim chief executive.
Conclusion
Goodhead has firmly denied any wrongdoing, insisting the firm was financed through commercial loans rather than client money and describing his removal as a boardroom coup rather than a governance failure.
Pogust Goodhead’s leadership says controls have since been strengthened and that the firm remains focused on its flagship cases, including the ongoing BHP litigation and the still-unresolved diesel emissions claims. Whatever the outcome, the episode has become a striking example of how quickly a heavily funded law firm can find itself under scrutiny from both regulators and the clients it was built to serve.
