Regulatory matters are troubling a rising number of UK businesses, fuelling demand for outside counsel
The 2011 Fulbright & Jaworski litigation trends survey reports more than a third of UK companies faced regulatory proceedings in the last year. This compares with 32% in 2010 and only nine per cent in 2009. The rise is reflected worldwide, with nearly half of all public companies involved in at least one regulatory proceeding in the last year.
This is creating extra demand for outside counsel to assist in handling investigations. In 2011, nearly half of all 405 in-house lawyers responding to the survey reported hiring outside counsel in connection with regulatory proceedings, up from 37% in 2010.
Lista Cannon, partner at Fulbright & Jaworski, says: “Businesses are operating in a global climate of enhanced supervision, intense scrutiny, and significant enforcement, including increased penalties.
“As a result, companies and their advisers in the US, UK and internationally are handling increasing numbers of internal investigations and regulatory proceedings, often as a result of whistleblowing allegations, at substantial cost to the business. Co-operation between regulators on an international basis is now a reality.
“As a result, businesses and their advisers are increasingly subject to multi-jurisdictional challenges.”
Involvement in litigation is also on the rise—nearly three-quarters of all respondents were sued last year, and nearly a quarter were sued for a claim valued at more than US$20m.
In the UK, one in five respondents predict a further increase in the number of legal disputes in the coming year, with many attributing this to the climate of heightened regulatory scrutiny.
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