Cybersecurity Litigation Risk Rises, Survey Finds

U.S. corporations faced increased exposure to cybersecurity and data privacy litigation in 2025, with risks expected to intensify this year amid shifting enforcement priorities, rising verdict amounts and ongoing resource constraints, according to the 21st Annual Litigation Trends Survey released Jan. 14 by Norton Rose Fulbright.

The survey found that overall dispute exposure remained consistent year over year in 2025, maintaining elevated levels seen in 2024. Cybersecurity and data privacy exposure increased for 38% of organizations, making it the largest area of increased risk, followed by employment and labor disputes at 31%. Respondents also expect exposure in both areas to rise in 2026.

Looking ahead, corporate counsel identified anticipated industry-specific litigation hotspots in technology, driven by regulatory investigations, antitrust and intellectual property disputes; consumer markets, centered on contract and IP disputes; and retail, with a focus on employment matters.

Regulatory proceedings declined in 2025, with 56% of organizations reporting involvement in at least one proceeding, down from 70% in 2024. The survey attributes the decrease to reduced enforcement activity at the federal level. However, the outlook for 2026 remains mixed as 82% of respondents reported 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, U.S. head of litigation and disputes at Norton Rose Fulbright. “Legal teams are navigating a more divided enforcement environment, rising costs and evolving technologies – all while facing consistent expectations to do more with less.”

The survey also found growing adoption of artificial intelligence in legal operations. Seventy-eight percent of respondents support the use of AI by outside counsel to assist with litigation work, up from 73% in 2024. Most respondents allow employees to use free or publicly available AI tools, and more than 60% use generative and agentic AI tools created or customized for their business needs. At the same time, 59% said managing litigation risks associated with AI has been a challenge.

Confidence in litigation preparedness declined amid concerns about large jury awards. The share of corporate counsel who said they feel “very prepared” to address litigation over the next 12 months fell to 29% from 46%, although overall preparedness levels remained largely unchanged. Seventy-seven percent of respondents reported increased concern about “nuclear verdicts” exceeding $10 million, while 58% expressed concern about “thermonuclear verdicts” exceeding $100 million.

Sector-by-sector litigation risk outlook

Industry-specific findings highlighted ongoing and emerging risks across sectors. Nearly one-quarter of energy companies expect increased exposure to disputes involving environmental contaminants such as PFAS. Intellectual property disputes continue to pose a defining risk for technology companies. Financial institutions cited cryptocurrencies and consumer fees as emerging sources of risk, particularly among mid-size firms, while class actions remain a persistent challenge for healthcare organizations and companies in consumer markets.

Additional findings showed that 28% of respondents experienced class actions in 2025, up from 25% in 2024. Among those, 40% faced cybersecurity and data privacy class actions, compared with 32% the prior year. The share experiencing ESG-related class actions rose to 30% from 16%. Average litigation spend for companies with $1 billion or more in revenue was $4.1 million in 2025, down slightly from $4.3 million in 2024. Eight in 10 corporate counsel were involved in at least one lawsuit during the year, consistent with 2024 levels.

The report is based on a survey of more than 400 U.S. general counsel and in-house litigation leaders, along with interviews with a dozen corporate counsel, and examines litigation trends across industries including energy, financial institutions, healthcare and technology.