Legal firm faces “material uncertainty” after publishing overdue accounts
After months of delay, the law firm behind the largest action to hit the London High Court published its 2023 financial accounts, which revealed an annual loss of £95m.
Pogust Goodhead’s 2023 account, published on Companies House on Monday, four months past the deadline, showed turnover decreased sharply to £3,607,387, down from £53,077,800 in 2022.
The final loss after tax and finance items was over £95m, and the group’s net liabilities were over £604m.
Both the directors and the independent auditor, MHA, flagged a “material uncertainty” regarding the firm’s ability to continue operating, noting it is heavily dependent on securing further funding facilities to meet working capital needs.
In the same year, Pogust Goodhead secured $552m (£408m) of funding from US hedge fund Gramercy Funds Management, with an additional $65m top-up agreed last year.
Commenting on the accounts, a spokesperson for the firm said: “Pogust Goodhead’s 2023 accounts reflect a business built around long-running, high-value litigation – not a traditional annual billing cycle.”
“We invest heavily upfront to run claims for clients on a no-win, no-fee basis, and those costs are typically recovered only when cases settle or succeed. Our strong portfolio of litigation assets provides a solid foundation for long-term revenue.”
Mining giant BHP was found liable in November for a dam disaster under both environmental law and the Brazilian civil code, in a significant ruling for Pogust Goodhead. However, the group was going to seek permission to appeal this decision.
However, in the lead-up to this decision, the firm made headlines over its mounting debts, an ousted CEO, and reported internal concerns regarding the US hedge fund, Gramercy Funds Management.
CEO departed with no statement
One of the founders and the former CEO, Tom Goodhead, was ousted from the firm in August. No reasons were provided for Goodhead’s departure, but the company’s chief operating officer, Alicia Alinia, was appointed as its interim CEO.
The accounts stated that during 2023, the company advanced a net total of £3,089,059 to an individual who was a director at the time. The report reveals that a separate debt of £4,234,867 due from this former director was waived by the company after the reporting date.
“Since the reporting date, the firm has implemented governance changes that strengthen financial stability and long-term resilience,” a spokesperson stated.
“The move to an independent Board in August 2025 has reinforced oversight and accountability, ensured continuity of case management, and supported the firm’s long-term future and ability to deliver outcomes for clients.”
Pogust Goodhead is currently suing a range of car manufacturers for their alleged role in the Dieselgate scandal. “In 2025, we also secured additional funding from Gramercy Funds Management, a clear endorsement of our litigation portfolio and renewed confidence in our leadership, strategic vision and long-term direction.”
However, the 2024 accounts are currently overdue. The legal businesses said they are working “closely” with Companies House to ensure accurate and transparent reporting and that the accounts will be filed in due course.