Over the past 20 years, Norton Rose Fulbright US LLP has researched corporate advisors to identify trends affecting businesses. Over the past 20 years, the litigation situation has undergone profound changes driven by technological advances and cultural changes. From digitizing legal workflows to rising cybersecurity and increasing data privacy concerns, these transformations have reshaped the day-to-day operations of corporate lawyers and the broader corporate environment.
The pace of lawsuits remained relatively stable from 2023 to 2024, but almost half of respondents are hoping to see more lawsuits in 2025. While employment and labor issues and contract disputes remain constant, cybersecurity and data privacy claims are currently one of the organisations' biggest litigation concerns.
In 2024, there was a noticeable jump in the share of respondents who experienced bank and financial dispute lawsuits, doubled to reach one in five respondents. Additionally (23%) experienced antitrust law, trade and competition lawsuits. Environmental and social and governance (ESG) claims are also prominent. In addition, regulatory procedures increased significantly in 2024. Chevron Doctrine and regime change, most of our respondents expect to be busy in 2025.
Class and large action litigation continues to be a perennial concern. Almost a quarter (24%) of respondents reported class action lawsuits over the past 12 months. The most common areas are employment and labor, consumer protection, cybersecurity, data protection and data privacy. ESG and environmental and toxic tort claims also jumped into activity, affecting 15% and 21% of those who experienced class and public behavior, respectively last year.
The technology and consumer market industries are preparing to step up litigation, with 39% and 38% respectively forecasting significantly more volumes. “Consumer sentiment has evolved negatively,” said the vice president and chief advisor of the restaurant company. “Consumers have higher expectations for businesses and are willing to file a lawsuit when they feel that they are short on businesses.”
Disputes are a particular concern for industries such as healthcare and financial services, which acquire a large amount of highly sensitive data. 45% and 41% of respondents in these industries reported an increase in exposure, respectively. Such critical infrastructure appears to be a favorite target for cybercriminals.
Further exposure to cybersecurity and data privacy disputes remains a key concern for clients. With the increasing use and advances in AI technology, managing these emerging risks and complying with evolving regulations is even more important and requires a proactive approach. Furthermore, we see that as the technology industry continues to see astronomical growth and development, and that among regulators, it is also seeing uncomplex organisations being taken root among regulators. Additionally, these new technologies are integrated into a wide range of consumer products, which requires businesses to prepare for consumer protection and subsequent product liability litigation.
As for the impact of the litigation, most business advisors are at least somewhat concerned about the “nuclear verdict,” with over half saying they have moderate or significant interest. Corporate Counsel hopes this trend will expand in 2025. These concerns have been particularly raised in the tech industry, with 56% predicting a significantly higher verdict amount this year.
Almost all (92%) respondents stated that it is important to resolve the dispute before going to court, and that it is important to eliminate the risk of a large-scale ju appraisal award while reducing spending. However, 82% say that increasing legal costs, changes in regulations and high demand for settlements make it more difficult to reach a settlement. Corporate counsel attributes the shift to multiple factors, including increased unwillingness to compromise, high settlement demands, increased legal costs, changes in regulations and a more positive attitude from plaintiffs.
As we move to 2025, organizations face many new litigation challenges. The evolving regulatory and business environment requires a proactive and strategic approach to compliance and risk mitigation. In addition to rising antitrust laws, banking and financial disputes, corporate lawyers need to navigate steady employment flows, cybersecurity and contract litigation. Additionally, new layers of complexity will be added, along with new threats such as the “nuclear verdict” and Greenwash claims, along with the integration of new and evolving technologies into consumer products. It is important that organizations plan now to address these issues.
