Introduction Litigation continues to see significant activity, with various types of legal disputes impacting businesses. Key areas of concern include regulatory compliance, cybersecurity, data protection, and environmental, social, and governance (ESG) issues. This article examines the findings of Norton Rose Fulbright’s Annual Litigation Trends Survey, highlighting six key trends shaping the litigation landscape in 2023.
Key Litigation Trends
Cybersecurity and Data Protection
Cybersecurity and data protection have become major dispute areas for organizations. In 2023, nearly 40% of corporate counsel reported an increase in litigation related to regulatory investigations and cybersecurity. The survey indicates that record cyberattacks and the complexity of data protection regulations are driving this increase.
Employment and Labour
Employment and labour disputes were the most common area of litigation in 2022. The survey highlights increased enforcement actions, unionization, and a focus on social justice as key factors contributing to this trend. Employment and labour-related class actions remain prevalent, with ongoing issues likely to keep this area active.
Environmental, Social, and Governance (ESG)
ESG concerns are on the rise, with 28% of respondents reporting increased exposure in 2022. ESG-related class actions, particularly in industries like technology, real estate, and energy, are becoming more common. The survey suggests that this trend will continue to grow as regulatory and public scrutiny intensifies.
Class Actions
Class actions are a significant area of concern, with employment and labour disputes being the most common type. Cybersecurity, data protection, and ESG issues are also leading areas of future concern. The survey indicates that these areas are likely to see increased class action activity in the coming years.
Regulation and Investigations
Compliance with evolving regulations and increased regulatory scrutiny have heightened litigation risk across various dispute areas. More than half of the respondents were involved in at least one regulatory proceeding last year, with uncertainty over new rules adding to the risk. The healthcare, life sciences, and retail sectors are particularly affected.
Litigation Preparedness
Confidence in in-house litigation capabilities is growing. Factors such as in-house litigation experience, confidence in external counsel, and the use of internal risk management practices and tools like eDiscovery platforms and data protection solutions contribute to this preparedness. Consulting experienced litigation lawyers can help mitigate legal risks and prepare businesses for future challenges.
Key Points
- Organizations face complex challenges due to evolving regulatory requirements, changing consumer expectations, cybersecurity threats, and data privacy concerns.
- Corporate counsel must clearly understand risk exposure, implement robust preventative measures, and use compliance tools to mitigate risks and effectively manage litigation.
- The report underscores the importance of robust risk management and compliance tools in navigating the evolving litigation landscape.
FAQs
What are the main areas of litigation in 2023?
The main areas of litigation in 2023 include cybersecurity and data protection, employment and labour, ESG issues, class actions, and regulatory investigations.
Why is cybersecurity a major litigation trend?
Cybersecurity is a major litigation trend due to the increasing frequency of cyberattacks and the complexity of data protection regulations, which have resulted in more disputes and legal challenges for organizations.
How are ESG issues impacting litigation?
ESG issues are impacting litigation as regulatory and public scrutiny increases, leading to more class actions and disputes in industries like technology, real estate, and energy.
What sectors are most affected by regulatory investigations?
The healthcare, life sciences, and retail sectors are most affected by regulatory investigations, with increased scrutiny and evolving regulations contributing to higher litigation risks.
How can businesses prepare for litigation?
Businesses can prepare for litigation by developing robust risk management practices, using compliance tools, consulting experienced litigation lawyers, and investing in in-house litigation capabilities and tools like eDiscovery platforms.
Why is there an increase in employment and labor disputes?
There is an increase in employment and labor disputes due to heightened enforcement actions, unionization efforts, and a growing focus on social justice issues, leading to more litigation in this area.
Conclusion
The litigation landscape is evolving rapidly, with significant activity in cybersecurity, data protection, ESG issues, and employment and labour disputes. Organizations must stay informed about these trends, implement robust risk management and compliance measures, and consult experienced legal professionals to navigate the complexities of modern litigation effectively.