Class Action Litigation Funding Moves
Tom Borman, LawFuel Contributor
Ambitious, class action law firm Pogust Goodhead is seeking additional funding from its financial backers to fuel its ambitious growth plans.
This move comes on the heels of a substantial £550 million loan secured earlier this year, which the firm says is the most any law firm has obtained – ever – and the new move for funding highlights the firm’s aggressive expansion strategy and its confidence in future success.
The firm’ stated goal is to become “the largest consumer class action law firm in the world,” but mounting massive legal cases also requires a hefty investment in firm infrastructure, which is why more backing from fund manager Gramercy is sought.
The firm, co-founded by London barrister Thomas Goodhead (pictured) is known for its innovative approach to litigation and its monster multi-billion dollar class action claim against mining giant BHP has a focus on high-profile group actions, has been making waves in the legal industry with its rapid growth and high-stakes cases.
Pogust Goodhead’s recent request for additional capital underscores the significant financial demands of managing large-scale litigation and the firm’s commitment to pursuing justice for its clients.
An earlier deal with Gramercy in 2023 was one that Pogust Goodhead said gave them “the financial power to take on some of the largest companies in the world on behalf of millions of people” allowing them to “go toe-to-toe” with major corporations that have “access to infinite resources to litigate against these cases.”
The latest funding arrangement will be seen no differently as major lawsuits are instigated.
Litigation Finance Developments
The moves by Pogust Goodhead is noteworthy in the context of the evolving landscape of litigation finance where alternative funding models are becoming increasingly prevalent.
The firm’s approach exemplifies the growing trend of law firms leveraging external capital to support their operations and case portfolios aligning with the broader shift in the legal sector towards more flexible and innovative funding solutions.
The litigation funding moves have been gaining momentum in recent years, as evidenced by the rise of litigation funding firms and the increasing acceptance of third-party financing in legal proceedings.
New entrants to the market are also making themselves known, such as Arcadia Finance’s entry that we recently reported.
Pogust Goodhead has built a reputation for taking on challenging group actions, particularly in areas such as environmental law and consumer rights.
Its willingness to seek substantial funding demonstrates the scale of its ambitions and the potential rewards it sees in its current and future caseload. It is also a firm that has broken barriers with its pay rates for lawyers.
As firms vie for positions in lucrative practice areas, the ability to secure significant financial backing can provide a crucial edge. Pogust Goodhead has shown that it is positioning itself for long-term growth and market leadership.
As more firms explore alternative funding models, there may well be a shift in how legal services are delivered and how firms compete for high-value cases.
As law firms continues to adapt to new challenges and opportunities the opportunities provided by obtaining finance from litigation funders and others will unquestionably lead to further changes for law firms embracing both the money and the litigation opportunities that funding helps create.
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