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Company Law compliance and litigation

Companies are facing more and more legal disputes and as a result, are increasing the size of their legal departments while focusing on a variety of alternative means of dealing with potential litigation, according to AlixPartners' Litigation and Corporate Compliance Survey.ยน As such lawsuits grow more costly and more complex, companies have begun to reassess their compliance programs and implement new tools and processes that can reduce litigation-related risks.

According to the survey, a surprising one in 10 companies has been involved in bet-the-company litigation during the past 12 months, underscoring the threat that legal disputes pose. Not only does litigation result in signifi cant legal costs, but it may also present a major distraction for the managers involved. The survey found that the most common types of disputes involve contracts (89%) or intellectual property matters such as patent infringement (59%) or are product related (45%). Of the companies reporting increases in disputes, 83% say their litigation costs rose over the past 12 months.

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