For the last 20 years, Norton Rose Fulbright US LLP has surveyed general counsel to identify trends affecting corporation. Over the past two decades, the litigation landscape has undergone profound changes, driven by technological advancements and cultural shifts. From the digitization of legal workflows to the rise of cybersecurity and data privacy concerns, these transformations have reshaped the daily operations of corporate counsel and the broader corporate environment.
Although the pace of litigation remained relatively steady from 2023 to 2024, nearly half of respondents expect more litigation in 2025. And while employment and labor matters and contract disputes remain constants, cybersecurity and data privacy claims are now among the top litigation concerns for organizations.
2024 also saw notable jumps in the share of respondents who experienced banking and finance dispute litigation, which doubled to reach one in five respondents; even more (23 percent) experienced antitrust, trade and competition lawsuits. Environmental social and governance (ESG) claims have also taken prominence. Regulatory proceedings also grew substantially in 2024, and with the demise of the Chevron doctrine and a change in administrations, most of our respondents anticipate a busy 2025.
Class and mass action litigation remain a perennial concern. Nearly a quarter (24 percent) of respondents reported class action litigation over the past 12 months, with the most common areas being employment and labor, consumer protection, and cybersecurity, data protection and data privacy. ESG and environmental and toxic tort claims also saw a jump in activity, impacting 15 percent and 21 percent of those who experienced class or mass actions last year, respectively.
The technology and consumer markets industries are bracing for heightened litigation, with 39 percent and 38 percent anticipating significantly more volume, respectively. “Consumer sentiments have evolved negatively,” said a vice president and chief counsel at a food and beverage company. “Consumers have higher expectations for companies and are more willing to litigate when they feel companies are falling short.”
Disputes are a particular concern to industries like healthcare and financial services that amass large volumes of highly sensitive data. Forty-five percent and 41 percent of respondents in these industries, respectively, report increased exposure. Such critical infrastructure appears to be a favorite target for cybercriminals.
The increasing exposure to cybersecurity and data privacy disputes remains a critical concern for our clients. With increased use and advancement of AI technologies, managing these emerging risks and complying with evolving regulations becomes even more important and requires a proactive approach. Moreover, as the technology industry continues to see astronomical growth and development, we’re also seeing hypervigilance among regulators looking to root out noncompliant organizations. And as these new technologies are integrated into a wide array of consumer product, companies need to prepare for consumer protection and product liability actions that will follow.
When it comes to the impact of litigation, most corporate counsel are at least somewhat concerned about “nuclear verdicts,” with more than half saying they are moderately or significantly concerned. Corporate counsel expect this trend to extend into 2025. These concerns are particularly heightened for the technology industry, with 56 percent predicting significantly higher verdict amounts in the year to come.
Nearly all (92 percent) respondents said that settling disputes before they go to court is important, reducing spending while also eliminating the risk of large jury awards. However, 82 percent said that reaching a settlement has become more difficult due to factors such as increasing legal costs, regulatory changes and high settlement demands. Corporate counsel attribute this shift to multiple factors, including a growing unwillingness to compromise, high settlement demands, increasing legal costs, regulatory changes and a more aggressive stance from plaintiffs.
As we move into 2025, organizations face a host of new litigation challenges. The evolving regulatory and business environment demands a proactive and strategic approach to compliance and risk mitigation. Alongside an uptick in antitrust, banking and finance disputes, corporate counsel must navigate a steady stream of employment, cybersecurity and contract litigation. Further, emerging threats, such as “nuclear verdicts” and greenwashing claims, along with the integration of new and evolving technologies into consumer products, add new layers of complexity. It is important that organization plan now to address these issues.
