Law firm at centre of BHP mammoth lawsuit sued by its own funder

Pogust Goodhead, a city law firm, is currently embroiled in an £84 million lawsuit initiated by its own funder, the Brazilian financial services firm Vinci SPS Capital Gestão de Recursos Ltda. The dispute arises from Pogust Goodhead's involvement in a high-profile case against mining giant BHP, the largest legal action ever heard in English courts.

The lawsuit alleges that the law firm breached its obligations by not obtaining consent from its lenders before disbursing litigation proceeds to barristers and after-the-event (ATE) insurers. The controversy centers around a £42.7 million interim payment received into Pogust Goodhead's client account, which the funders claim should have been transferred to a designated receivables account.

Vinci SPS alleges that Pogust Goodhead delayed opening this account for over four and a half years and refuses to issue an invoice to the claimants until it discharges a trust in favor of its ATE insurers. The Brazilian company is seeking over £84 million in damages plus nearly £600,000 in legal costs through law firm Fieldfisher.

Pogust Goodhead has instructed DAC Beachcroft to defend it. The legal battle stems from a partnership established by US investment firm Gramercy Funds Management in October 2023, which provided a £450 million litigation funding deal and a subsequent £150 million facility in June 2026. The firm has faced previous legal issues, including a £2.2 million lawsuit in May 2025 over alleged unpaid legal bills from another law firm, Seladore Legal.