Financial institutions and energy, healthcare and tech companies in the US have been hit by a rise in cybersecurity and data privacy-related disputes since the start of the year, outpacing earlier expectations, according to a Norton Rose Fulbright report.
The ‘2026 Annual Litigation Trends Survey: A midyear industry pulse’ found that 56% of in-house counsel in those sectors saw an increased risk of cyber and data privacy disputes at a federal level, with 53% reporting heightened exposure at a state level.
By contrast, at the end of last year, just 29% of respondents from those sectors had expected to see greater cybersecurity and data privacy litigation exposure this year.
In-house legal leaders also flagged increased litigation concern around AI, with 46% reporting more federal dispute exposure and 42% reporting state-level increases.
Steven Jansma, Norton Rose Fulbright’s US head of litigation and disputes, said: “What stands out is how quickly the litigation environment is evolving, especially around cybersecurity incidents, consumer claims and AI-related disputes. We are seeing new approaches and a level of activity that is accelerating across industries. Even where federal enforcement has softened, states are often stepping in and pushing litigation forward.”
Employment and labour litigation risk was seen rising by 39% of respondents at federal level, but 44% reported more at a state level, reflecting new employment-related requirements in states including California and New York.
“State-level employment exposure is rising as plaintiffs look to jurisdictions they view as more favourable, especially as federal interpretations shift,” said Kimberly Cheeseman, co-head of litigation and disputes at Norton Rose Fulbright. “For multistate employers, that dynamic increases compliance complexity and forum risk in a very real way.”
Cyber and employment issues are also fuelling increased class action concerns. Some 51% of in-house counsel cited data or cyber breaches as a likely cause for such litigation, with 47% noting workforce changes such as layoffs as a trigger. Another 41% cited AI-related deployments as a potential class action catalyst.
“Data breaches create uniquely high-stakes litigation because even ‘small’ incidents can trigger massive potential exposure to class actions once statutory damages and multistate laws come into play,” said Edward Casmere, co-head of litigation and disputes at Norton Rose Fulbright.
The midyear report was based on a survey of 135 general counsel and in-house litigation leaders at US-based energy, financial institutions, healthcare and technology companies.
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