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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.¹ 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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