The business litigation landscape in 2026 is marked by heightened exposure across multiple fronts. Corporate counsel are navigating an increasingly divided enforcement environment, rising verdict amounts, and evolving technologies—all while facing consistent expectations to do more with less .
This guide examines the most common legal disputes facing businesses in 2026, from AI liability and cybersecurity class actions to director accountability and antitrust enforcement—with practical strategies to reduce litigation risk.
Top Dispute Risks for 2026
Cybersecurity & Data Privacy
of organizations saw increased exposure in 2025—the biggest area of increased risk
rank cybersecurity as their single greatest dispute risk for 2026
New reporting obligations under the EU's NIS2 Directive, the US CIRCIA, and Singapore's Cybersecurity Act require critical infrastructure operators to report major cyber incidents within strict timeframes .
AI-Related Disputes
of GCs expect AI-related litigation to increase
AI has overtaken IP as the top concern for in-house lawyers
The EU's New Product Liability Directive 2024/2853 introduces changes to the strict liability regime to account for new technologies including AI . The UK Law Commission is reviewing the Consumer Protection Act 1987 to determine if the strict liability regime remains fit for purpose in the digital age .
GCs are most concerned by employment disputes from AI's impact on jobs, discrimination claims from AI-powered decision making, contractual disputes over AI services, and IP infringement following employee use of generative AI .
Antitrust & Competition
7-Eleven's record penalty for prior-notice violation
Ryanair fine by Italian Competition Authority for abuse of dominant position
Italian cast iron cartel fines
California is moving to revive criminal antitrust enforcement with SB 763 (increasing penalties) and AB 325 (banning pricing algorithms to facilitate collusion) .
Algorithmic pricing lawsuits are heading toward the Supreme Court, with conflicting appellate rulings on whether shared pricing software constitutes coordination .
Director & Shareholder Disputes
Claim against former CEO for alleged breaches of duty
Unfair prejudice claim following founder removal
The "Shareholder Rule" was abolished by the Privy Council in Jardine Strategic Ltd v Oasis Investments II Master Fund Ltd [2025], meaning companies can now assert legal advice privilege against shareholders . This fundamentally alters the playing field in unfair prejudice petitions.
Surge in 'Bad Leaver' disputes, particularly in AI and tech sectors, as boards use conduct allegations to trigger share transfers at nominal value .
Intellectual Property
IP ranks as the second most likely source of disputes after AI
Copyright and licensing disputes, trade secrets claims, and urgent injunctions over data use or software deployment are prominent in 2026 .
The speed and quality of expert input often decide interim relief. Courts show little patience for speculative arguments about cutting-edge technology; outcomes turn on clear contractual frameworks, clean data, and robust evidence .
Class Actions
of companies experienced class actions in 2025, up from 25%
experienced an ESG-related class action—nearly doubling from 16%
Algorithmic pricing lawsuits against hotel and casino operators using shared software platforms could reach the Supreme Court, affecting any business using data-driven pricing tools .
The UK opt-out collective action regime is under consultation; the SRA is also consulting on high-volume consumer claims (data breaches, diesel emissions, motor finance) .
The Rise of Nuclear Verdicts
The share of corporate counsel who feel "very prepared" to address litigation declined to 29% from 46%, even as overall preparedness levels remain flat . Rising verdict amounts are compounding challenges for corporate counsel.
Industry-Specific Litigation Hotspots
Billions at Stake: 2026 Class Action Appeals
Ticket pricing class action covering hundreds of millions of transactions over more than a decade
App Store monopoly allegations; billions in alleged overcharges
Multi-billion dollar verdict under appellate review
Hundreds of millions in settlements under fire
Regulatory Proceedings & Cross-Border Investigations
Regulatory Disputes
of companies involved in regulatory disputes in last 12 months
report increased state enforcement activity in response to shifting federal priorities
Cross-Border Investigations
of organizations concerned about being subject to cross-border or multi-agency investigation in 2026
say data preservation/forensics present a challenge for investigation preparedness
Top concerns: data privacy/cybersecurity (17% of investigation risk) and tax (11%)
Tax: The Second Greatest Concern
Tax emerged as both the second greatest dispute (12%) and investigations (11%) risk for 2026 .
This reflects the growing complexity of cross-border tax compliance, transfer pricing scrutiny, and shifting international tax frameworks. The OECD's Pillar Two global minimum tax adds layers of complexity worldwide, and businesses should prepare for Pillar Two disputes in all material jurisdictions .
Geopolitics and Trade Policy
Employment & Labor
Employment Disputes
of organizations saw increased exposure in 2025
rank employment as greatest dispute risk
ESG Disputes
experienced an ESG-related class action in 2025—nearly double the 16% in 2024
rank ESG as greatest dispute risk
APP Fraud & Financial Services Litigation
The Supreme Court's judgment in Hopcroft, Johnson and Wrench on motor finance commission found dealers were not subject to fiduciary duty but upheld unfairness under s.140A Consumer Credit Act 1974. The FCA will consult on a redress scheme .
Recent High Court judgments in Santander v CCP Graduate School Ltd and Hamblin & Ors v Moorwand & Ors reinforce that receiving institutions have limited obligations to non-customers, even in sophisticated payment fraud schemes . Victims continue to make creative arguments to recover against banks/PSPs, particularly as new methods of fraud (AI-enabled) become more prevalent .
APP fraud litigation continues, with courts refining banks' duties and clarifying the boundaries of the Quincecare duty .
Insolvency-Linked Disputes
Cash-flow stress persists in construction, hospitality, and retail. Elevated default judgments and defended money claims point to more statutory demands, winding-up petitions, and office-holder claims (preferences, transactions at undervalue, misfeasance) .
County Court claims rose 4% year-on-year in Q3 2025 to 479,000, driven largely by money claims. Defended cases increased 11% to 76,000, and trials climbed 9% to 14,000 .
International Arbitration Trends
Organizations expect the greatest challenges for international arbitration to arise from digital transformation and data security, cost and duration, and geopolitical issues. Adoption of technology and cybersecurity threats present challenges in virtual hearings, digital evidence management, and legal research .
The Hague Judgments Convention 2019 came into force in the UK on 1 July 2025, providing a uniform framework for recognition and enforcement of judgments between the UK and other contracting states (all EU member states except Denmark, Uruguay, and Ukraine). More enforcement actions are expected under this Convention .
Practical Steps to Reduce Litigation Risk
Audit Contracts & Relationships
Scrutinize pricing, variation mechanisms, termination and suspension rights, and discretion clauses. Many 2020–2022 agreements are being tested by struggling business partners .
Review Dispute Resolution Clauses
Include clear timelines for escalation, ADR triggers, and specify governing law and jurisdiction to avoid ambiguity in cross-border disputes .
Integrate ADR into Playbooks
Build mediation or settlement checkpoints around procedural milestones. With defended claims and trials rising, narrowing issues early reduces overall cost and operational distraction .
Document Retention & Compliance
59% of in-house lawyers have implemented document retention policies. 50% have conducted litigation/compliance preparedness reviews .
Implement AI Restrictions
43% have implemented restrictions on generative AI use; 28% have banned WhatsApp for company business . Train employees on trade secret risks of public AI tools.
Monitor Business Receivables
Move decisively where enforcement is warranted, but consider standstills and restructuring plans where value can be preserved. Use automated credit monitoring tools to flag early signs of financial distress .
Keep Contemporaneous Records
Document decisions on payments and asset transfers to defend against misfeasance claims and anticipate office-holder scrutiny of antecedent transactions .
Create Litigation Budgets
Include interlocutory applications (summary judgment, specific disclosure). Use historic case data to help clients understand timescales and costs .
Litigation Preparedness Review
Conduct a "litigation preparedness review" to highlight areas of potential exposure and inform mitigation and response planning .
- Integrate the business's use of AI across that exercise to sense-check reliance on AI outputs and fully understand associated weaknesses .
- Budget for contested litigation—more counterparties are defending, so expect interim skirmishes rather than quick defaults .
- With 38% of organizations reporting their 2026 disputes budget is insufficient, resource constraints reduce flexibility and increase the risk of delayed or reactive decision-making .
Litigation Funding: Legislative Reform Pending
Following the Civil Justice Council's review after the Supreme Court ruling in PACCAR, the Government announced in December 2025 that it will introduce legislation to reverse the judgment's impact. Currently there is no indication of when it will be effective or whether it will be retrospective .
2026 Litigation Timeline
Access to Public Domain Documents pilot begins in Commercial Court and Financial List
Antitrust class action settlement in naval architect no-poach litigation
Algorithmic pricing investigation launched
Public comment deadline
First-come, first-served applications for IP vouchers
Patents, trademarks, designs fees rise for first time since 1998–2018
Automatic expungement begins
General date of application for AI governance requirements
Proactive Risk Management
2026 presents a complex and evolving litigation landscape for businesses. Key takeaways:
- AI disputes have overtaken IP as the top concern—55% of GCs expect AI-related litigation to increase . Employment impacts, discrimination claims, and IP infringement from employee AI use are key risk areas.
- Cybersecurity and data privacy exposure grew for 38% of organizations in 2025 and remain the top dispute risk . New reporting obligations under NIS2, CIRCIA, and other regimes demand compliance readiness.
- Director liability is tightening—the "honest belief" defence is no longer sufficient where directors mislead boards or cause breaches .
- Antitrust enforcement is intensifying globally, with record fines, criminal enforcement revival in California, and algorithmic pricing under scrutiny .
- Class actions with billions at stake are pending appellate review—Live Nation, Apple, NFL Sunday Ticket . ESG-related class actions nearly doubled to 30% .
- Nuclear verdicts concern 77% of corporate counsel, yet preparedness has dropped sharply .
Businesses must conduct litigation preparedness reviews, audit contracts, implement AI restrictions, maintain clean records, and budget for contested litigation. As one litigator notes, "Clients will choose firms that deliver outcomes, not adjectives" . The same applies to in-house teams: proactive risk management and strategic discipline will define the winners in 2026's disputes landscape.