A London‑based law firm at the centre of the record‑setting BHP dam‑disaster case is now being sued by the Brazilian fund that financed the action, a development that underscores the volatility of cross‑border litigation funding for investors, including those in Canada.
Pogust Goodhead, formerly PGMBM, has been served with a claim for £84 million by its funder, Vinci SPS Capital Gestão de Recursos Ltda. The Brazilian firm alleges the law firm breached financing terms by moving an interim £42.7 million payment into its client account without the lender's consent and by delaying the opening of a designated receivables account for more than four and a half years.
Vinci SPS had supplied 90.09 million Brazilian reais (about £12.8 million) to support Pogust Goodhead's litigation against mining giant BHP, which was found liable in November 2025 for the 2015 dam collapse in Brazil that killed 19 people. The next trial phase on causation and loss is scheduled for April 2027.
Pogust Goodhead argues it cannot release the funds until it issues an invoice to the claimants and settles a trust for its after‑the‑event insurers, a position Vinci SPS rejected, insisting its rights outrank any insurer trust. The firm has retained DAC Beachcroft to defend the claim.
The dispute follows a $552.5 million (£450 million) litigation‑funding agreement signed in October 2023 with US‑based Gramercy Funds Management, which later added a $150 million facility in June 2026. Earlier, the firm faced a £2.2 million claim from Seladore Legal over unpaid retainers.
Canadian investors with exposure to litigation‑funding vehicles watch the case closely, as BHP is listed on the Toronto Stock Exchange and similar financing structures are gaining traction in Canada's own class‑action market. The outcome may influence how Canadian funds assess contractual safeguards and consent requirements in future cross‑border deals.
Pogust Goodhead declined comment on the latest proceedings.