Today, Norton Rose Fulbright released the 2026 Annual Litigation Trends Survey, its 21st annual survey on litigation issues and trends!
The 2026 Annual Litigation Trends Survey (available here) is once again based on insights from more than 400 general counsel and in-house litigation leaders in industries such as energy, financial institutions, healthcare and technology, among others. The findings reveal evolving risk management strategies, operational adjustments and renewed focus on cost control as organizations prepare for a year of increased complexity and regulatory unpredictability
Here are some key takeaways from the survey:
- Elevated and Evolving Risk: While the average number of lawsuits per organization has decreased, litigation exposure remains high. Cybersecurity and data privacy have emerged as the dominant threat, with 38% of organizations reporting increased exposure in 2025 – a figure that surpassed expectations. Employment and labor disputes remain a persistent and widespread challenge.
- The “Nuclear Verdict” Phenomenon: Concern over jury awards is intensifying. A significant majority of respondents (77%) are increasingly worried about “nuclear verdicts” (over $10 million), and 58% now express concern about “thermonuclear(!) verdicts” (over $100 million). This trend is fueling higher settlement demands, increasing litigation costs, and reducing plaintiffs’ willingness to settle.
- Shifting Regulatory Enforcement: Federal regulatory proceedings have declined sharply, with the share of organizations facing at least one action dropping from 70% in 2024 to 56% in 2025. However, this federal retreat has catalyzed increased state-level enforcement, with 82% of respondents reporting heightened activity from state attorneys general and regulators.
- Declining Confidence and Resource Pressure: The confidence of corporate counsel has slipped, with the share feeling “very prepared” for litigation dropping from 46% to 29%. This is attributed to budget constraints, macroeconomic uncertainty, and smaller in-house litigation teams. Organizations are spending an average of $2.4 million on litigation, with a decreasing portion allocated to outside counsel.
- Growing AI Adoption with Caveats: The use of AI in legal operations is accelerating, with strong support (78%) for its use by outside counsel to achieve cost and time savings. Over 60% of organizations are deploying customized generative and agentic AI tools. However, managing the litigation risks surrounding AI itself has proven to be a challenge for 59% of respondents.
- Class Action Hotspots: Class action litigation is increasingly concentrated in specific areas. Cybersecurity and data privacy class actions saw a notable year-over-year increase, as did ESG-related class actions, which nearly doubled. Conversely, employment and labor class actions experienced a significant decline.
- Impact of Overturning the Chevron Doctrine: The 2024 Supreme Court decision overturning the Chevron doctrine continues to reverberate through the regulatory landscape. 55% of respondents believe the decision increased the number of lawsuits involving regulatory matters in 2025. This belief is strongest in healthcare (70%), technology (66%), and energy (59%). 63% agree that the decision created greater incentives to challenge agency rules in court. 50% say the ruling has made regulatory compliance more difficult.
I also decided to run the report through NotebookLM and create an infographic to capture a few highlights, which is here:
The 42-page report, which is chock-full of additional stats and graphics, is available here. It’s a must read every year!
So, what do you think? What do you find most interesting about the 2026 Annual Litigation Trends Survey report? Please share any comments you might have or if you’d like to know more about a particular topic.
Assisted by GenAI technology.
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