Pogust Goodhead and emerging markets investment manager Gramercy have today announced a landmark £450 million investment partnership, the largest litigation funding deal in legal history.
The largest investment in a law firm worldwide
The litigation funding deal is the largest worldwide investment in a law firm and the largest single investment from Gramercy to date.
The partnership will address the growing demand from consumers and other victims of injustice to access redress against corporations through group litigation.
This transaction reinforces Gramercy’s status as a leading capital provider to impactful sectors across emerging markets.
Litigation funding to help hold corporations accountable
Further consolidating Pogust Goodhead’s position as the world’s premier class action law firm, the deal strengthens our firm’s financial power to take on corporate giants such as BHP and Mercedes across the world on behalf of millions of individuals.
We currently represent over 3 million clients in cases across the world and have raised a total of over £750M in financial backing, valuing the firm at over £9 billion.
A comment from Tom Goodhead
Tom Goodhead, Pogust Goodhead Global Managing Partner and CEO, said: “We are delighted to secure this major investment that will transform our business and give us the financial power to take on some of the largest companies in the world on behalf of millions of people. This landmark deal shows that some of the most sophisticated institutional investors in the world have analysed our cases and believe that they will be successful.
“This investment will not only ensure we resolve our existing cases successfully, but we now have the financial firepower to hold any company anywhere in the world accountable for corporate wrongdoing.”
Tom Goodhead continued: “This investment is a capitalist solution to the negative externalities of capitalism. Pogust Goodhead is not on an ideological mission to seek to destroy shareholder value in the companies we litigate against. Instead, we are seeking to hold companies accountable when they commit corporate misconduct in a way which will actually benefit shareholders long term and initiate behavioural change.”
A comment from Harris Pogust
“Our mission is to defend the rights of those who have been wronged by some of the world’s largest multinational companies. In just the past two years, we have secured historic settlements against British Airways, Uber and Volkswagen,” Harris Pogust, Chairman, said.
“We currently represent over 2 million individuals regarding the Dieselgate scandal. Additionally, we are handling the largest class action in legal history against the world’s two biggest mining companies.
“We are just beginning the journey to bring justice to those who most deserve it no matter where they reside and regardless of the size and perceived power of the corporate wrongdoer.”
“This transaction with Gramercy, a firm with deep expertise in litigation finance and very patient capital, gives us the ability to bring the fight to any wrongdoer,” Harris Pogust continued.
“Corporates are now on notice that it is in their financial interests and those of their shareholders to settle or face a firm with both the financial resources and litigation skills to obtain the justice our clients rightly deserve.
“We are extremely excited to have Gramercy as an investor and as a partner as we seek global justice for the millions of clients we currently represent and the millions yet to come.”
Robert Koenigsberger, Founder and CIO of Gramercy Funds Management, said:
“We are pleased to be partnering with Pogust Goodhead. The firm has an exceptional track record and we have been impressed by the team and their approach to complex litigation.
“Allocating to this transaction is clearly consistent with Gramercy’s mission to positively impact the well-being of our clients, portfolio investments (and their communities) and team members.
“The investment materially aligns with our ESG and impact investing objectives. We are proud to play a part in helping Pogust Goodhead seek justice for some of the worst environmental actions over the past few decades.”
The mainstream media have recognised the significance of the partnership. There have been reports in a number of major publications including: