Survey: Cybersecurity legal exposure increased in ’25

Legal exposure related to business cybersecurity and data privacy deepened last year, according to Norton Rose Fulbright’s 2026 Annual Litigation Trends Survey of more than 400 general counsel and in-house litigation leaders. .Thirty-eight percent of respondents had related legal exposure, up seven percent from 2024. “That exposure is expected to intensify, with industry-specific hotspots forecast in technology, consumer markets and retail,” according to the report. Employment and labor disputes were the second-most exposed field for litigation last year, at 31 percent. Thirty percent expect such exposure to increase in 2026. According to the survey, organizations faced increased legal exposure in several other fields, including class actions, 28 percent; banking and finance disputes, 24 percent; bankruptcy and restructurings, 21 percent; and personal injury, 20 percent. Regulatory matters fell last year, with states playing a more active role. According to the survey, the share of organizations with at least one regulatory proceeding fell to 56 percent from 70 percent in 2024 as the Trump administration cut back on several enforcement areas. Still, 82 percent saw increased state enforcement in response to changing federal priorities. Forty-two percent projected regulatory proceedings against their organizations to stay the same in 2026, while 39 percent expected an uptick.Seventy-seven percent are more concerned over potential jury awards of more than $10 million, with 58 percent worried about potential verdicts surpassing $100 million. “The escalation is fueling broader litigation challenges, including larger settlement demands, higher litigation costs and decreased willingness of plaintiffs to settle,” the report stated. The average number of lawsuits against organizations fell to 48 last year from 62 in 2024, while the share of companies involved with at least one lawsuit was little changed at 80 percent. The portion of corporate counsel who felt “very prepared” to handle litigation over the next 12 months fell to 29 percent from 46 percent, which Norton Rose Fulbright said reflected “a complex regulatory and dispute environment. “This shift in confidence could also be tied to resource constraints around staffing,” according to the report. “The pace of law-department hiring is expected to moderate and inhouse litigation teams have shrunk. While litigation spending remained steady last year, the share allocated to outside counsel declined; organizations are also reducing the number of firms they use for litigation.”