The number of US companies facing regulatory proceedings increased for the third consecutive year with one in five saying their company had faced a regulatory/investigation matter in the past year. The figures, from Norton Rose Fulbright’s Annual Litigation Trends Survey, revealed that technology and communications companies saw the most investigations although the increase was consistent amongst all industries.There was little change in the number of lawsuits against companies but there was a dramatic rise in the number of companies who were facing at least one lawsuit over $20 million in 2013, up to 34 per cent compared with 23 per cent in 2011. Healthcare companies had the most litigation matters compared with other industries – 55 per cent had more thant 20 suits compared with 30 per cent for the overall group.
Increase in scope and frequency
Otway Denny, US Disputes Head, Norton Rose Fulbright, said that the scope and frequency ‘of regulatory investigation matters increase in the US, as government agencies take a more proactive approach in determining compliance. Stricter regulations governing financial, environmental and workplace issues create a more complex environment for businesses, and these results show that a serious regulatory investigation is a reality for a growing number of companies each year.’
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