Norton Rose Fulbright’s 21st Annual Litigation Trends Survey reveals increased cybersecurity and data privacy risk amid an evolving regulatory landscape

Global law firm Norton Rose Fulbright's 21^st Annual Litigation Trends Survey, released today, finds that US corporations faced increased exposure to cybersecurity and employmentlitigation in 2025. Those risks are expected to intensify in 2026 as shifting enforcement priorities, rising verdict amounts and resource constraints compound challenges for corporate counsel.

Respondents reported consistent year-over-year dispute exposure in 2025, maintaining the already elevated levels seen in 2024. Cybersecurity and data privacy exposure grew in 2025 for 38 percent of organizations, marking the biggest area of increased risk, followed by employment and labor disputes (31 percent). Corporate counsel also expect exposure in both areas to increase this year. Respondents anticipate 2026 industry-specific litigation hotspots in technology (regulatory investigations, antitrust and IP disputes), consumer markets (contract and IP disputes) and retail (employment matters).

Regulatory proceedings declined last year, with the share of organizations involved in at least one falling to 56 percent from 70 percent in 2024 as the current administration tapped the brakes across several enforcement areas - reversing the trend during the final year of the previous administration, which saw a substantial uptick in regulatory proceedings. But the outlook for 2026 is mixed, reflecting an increasingly fragmented landscape as 82 percent of respondents report increased state enforcement activity in response to shifting federal priorities.

"The US litigation landscape is in a state of flux, with uncertainty now a defining condition for corporate counsel," said Steven Jansma,Norton Rose Fulbright's US Head of Litigation and Disputes. "Legal teams are navigating a more divided enforcement environment, rising costs and evolving technologies - all while facing consistent expectations to do more with less."

AI is gaining ground in legal operations, with caveats. Seventy-eight percent of respondents support AI use by outside counsel to assist with their company's litigation work, up from 73 percent in 2024. The majority of respondents also allow their employees to use free or publicly available AI tools, and more than 60 percent use generative and agentic AI tools that have been created or customized to their business needs. Yet most remain cautious about the potential challenges of AI, with a majority (59 percent) saying that managing litigation risks surrounding AI has been a challenge.

Confidence in litigation preparedness slipped in a complex regulatory and dispute environment as concerns about big-ticket verdicts rise. The share of corporate counsel who feel "very prepared" to address litigation over the next 12 months declined to 29 percent from 46 percent, though overall preparedness levels remain essentially flat. The majority of respondents (77 percent) are increasingly concerned about "nuclear verdicts" - jury awards surpassing US$10 million - and 58 percent feel the same about "thermonuclear verdicts" exceeding US$100 million.

This year's report is based on surveying more than 400 US general counsel and in-house litigation leaders along with interviewing a dozen corporate counsel to offer a clear view of how legal departments are responding to these pressing issues. It provides deeper insights into key industries - energy, financial institutions, healthcare and technology - while also examining sectors such as consumer markets, retail, real estate and construction, logistics and transportation as well as food and beverage.

Highlights of industry-specific litigation concerns and exposure include:

• Nearly one-quarter of energy companies expect increased exposure to disputes over environmental contaminants like PFAS (per-fluoroalkyl and poly-fluoroalkyl substances).
• Intellectual property (IP) disputes remain a defining risk for technology companies.
• Cryptocurrencies and consumer fees are two emerging sources of risk for financial institutions, particularly for mid-size firms.
• Class actions pose a persistent challenge for healthcare organizations and those in consumer markets.

Other notable key findings include:

• Twenty-eight percent of survey respondents experienced class actions in 2025, compared with 25 percent in 2024; 40 percent of that group experienced cybersecurity and data privacy class actions, compared to 32 percent in 2024, while the share that experienced an ESG -related class action nearly doubled to 30 percent in 2025, up from 16 percent.
• The average litigation spend for companies with US$1 billion or more in revenue in 2025 was US$4.1 million, down from US$4.3 million the previous year.
• Eight in 10 corporate counsel surveyed were involved in at least one lawsuit in 2025, on par with 2024 (82 percent).

A comprehensive report detailing the survey's findings is available at litigationtrends.com.

Norton Rose Fulbright provides a full scope of legal services to the world's preeminent corporations and financial institutions. The global law firm has more than 3,000 lawyers advising clients across more than 50 locations worldwide, including Houston, New York, London, Toronto, Mexico City, Hong Kong and Sydney, covering the United States, Europe, Canada, Latin America, Asia, Australia, Africa and the Middle East. With its global business principles of quality, unity and integrity, Norton Rose Fulbright is recognized for its client service in key industries, including financial institutions; energy, infrastructure and resources; technology; transport; life sciences and healthcare; and consumer markets. For more information, visit nortonrosefulbright.com.