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Blog 18 May 2026 2 min read

The Class Action Industry Has a Credibility Problem


A recent judicial rebuke aimed at Pogust Goodhead should concern anyone who believes modern class actions are primarily about justice.

According to Legal Futures, Mr Justice Bright criticised the firm for bringing claims on behalf of Brazilian claimants without proper authority, stating the case “should never have been commenced in the first place.”

That is not a technical error. It is a serious failure that exposes wider problems within the class action industry.

Large claimant firms increasingly operate like litigation businesses driven by funding, marketing, and claimant recruitment on an industrial scale. The pressure to sign up thousands of claimants and launch high-profile proceedings can overwhelm basic legal safeguards.

In this case, the court found the firm relied on decade-old powers of attorney that apparently did not authorise proceedings outside Brazil. The judge said proper due diligence would have uncovered the issue immediately. Instead, the litigation continued for years while assurances were repeatedly given that authority existed.

The ruling raises uncomfortable questions about how many mass claims are built on inadequate verification and procedural shortcuts.

Class actions are often portrayed as David-versus-Goliath battles, but they are also enormous commercial enterprises involving litigation funders, claims management operations, and aggressive publicity campaigns. The larger the claimant pool, the larger the potential payday. That creates incentives to prioritise scale over scrutiny.

The real damage extends beyond defendants. When group litigation collapses after years of proceedings, ordinary claimants are left with uncertainty, delay, and shattered expectations. Public confidence in legitimate legal redress is weakened.

What makes this case significant is the court’s increasingly hard line. Justice Bright described the conduct as a “serious breach” of obligations owed to the court and the defendant, and ordered a £900,000 interim costs payment on the indemnity basis.

The judiciary appears to be losing patience with speculative, funding-driven litigation that treats procedural discipline as secondary to commercial ambition.

Britain should pay close attention before importing more of America’s litigation culture, where lawsuits have become investment vehicles and settlement pressure often matters more than the merits of the claim itself.

Access to justice is important. But so are integrity, due diligence, and accountability.

Without them, class actions stop being instruments of justice and become tools of commercial leverage.

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