Inigo Defense Counsel Survey 2026

Inigo are excited to publish the findings from our 2026 Defense Counsel Survey. 

This is the fifth iteration of the US Securities Litigation review, asking the top US Securities Defense Attorneys for their opinions on the hot topics right now. We cover some familiar subjects, whilst exploring some new and emerging trends.

In this year’s survey we ask if this is one of the hardest times in history to run a public company, whether Securities Class Actions are likely to rise and the possible consequences of deregulation. We also look at the future of AI litigation and the impact of the SB21 reforms in Delaware. The chapters are as follows:

• How hard is it to run a public company today?
• Securities class actions – Will uncertainty drive more filings?
• Federal deregulation – Help or hindrance?
• AI litigation – the new normal?
• Delaware – Has SB21 helped?

We asked our survey respondents 49 questions, augmented by interviews and follow-ups, with fast-paced developments in Federal regulation and Securities filings to keep on top of. We highlight some of the key findings here but as ever, much more detail can be found in the survey.

Tough challenges for public companies likely to lead to more securities class actions, Inigo survey finds 

Global turbulence, seesawing stocks and AI mean are keeping CEOs up at night, according to the Inigo Defense Counsel Survey 2026. Two-thirds of our respondents believe it is harder to run a company today than it was only a couple of years ago. The price of getting it wrong is being hit with a securities class action lawsuit.

Defense counsel told us they are fielding more calls than ever from worried executives asking their advice on what to say in earnings statements because they’re finding it so difficult to accurately predict their companies’ earnings in such a volatile climate. CEOs now, more than ever, risk being punished if they’re either too optimistic or pessimistic in their forecasts. 

Making IPOs great again?

More respondents expect the number of securities class actions to be higher over the next 12 months than in the previous period, despite President Trump’s stated aim to make CEOs’ lives easier. 

Under him, the SEC has proposed dropping quarterly and ESG reporting requirements, among other efforts at cutting red tape, while the regulator is now focused on making it more attractive to be a public company. It has also dropped dozens of actions and investigations against crypto firms, with the new SEC head Paul Atkins stating the regulator will now concentrate on protecting investors and safeguarding markets, rather than regulation through enforcement.

But relaxing reporting requirements is likely to create a gray zone, in which the regulators require companies to provide less information while analysts and investors want them to be as transparent as they were before, if not more. Several companies have already been sued by stockholders for skipping votes on ESG policy issues.

President Trump’s trade and physical wars have also given CEOs headaches, not least by sending their stocks on a rollercoaster ride. Market turbulence tends to trigger more securities class actions, while settlement values may rise because plaintiff’s attorneys and now institutional investors are becoming more aggressive, our survey found.

Mandatory arbitrations unlikely to lead to lower payouts

The SEC’s landmark decision to drop its decades-long opposition to companies about to float opting for mandatory arbitration provisions was also a topic of debate. Although champions of the move argue arbitrations will lead to public companies saving money through lower payouts and litigation costs, the defense counsel we surveyed aren’t convinced. A majority believe companies will not spend less in legal costs if they opt for arbitrations – and may even spend more; they were also evenly split over whether settlement values would come down.

Fears over federal judges being increasingly political are overblown, at least in the corporate law realm, defense counsel told us. Most said it was the quality of the brief that would be the decisive factor in whether a judge would grant a motion to dismiss in a case, while their experience and know-how mattered more than their political leanings. But we did gather anecdotal evidence that some circuits are regarded as being more challenging to defend actions in than others.

AI – threats and opportunities abound

The number of securities class actions citing issues related to AI have risen steadily in recent years and we predict they are set to grow further over the next 12 months. Two-thirds of respondents told us it was still useful to track AI cases as a separate category because the underlying facts in these actions are different from other litigation. Most thought that AI washing allegations will form the biggest number of class actions this year, followed by missed guidance due to AI disrupting their business. But a vocal, albeit small, minority believe that more companies will be held to account by their investors for heavy AI investment that didn’t lead to the sales boom promised by their leaders. “Mark my words, the AI infrastructure boom is the next Railway Mania” one attorney we surveyed told us. If the AI boom fails, the plaintiff’s bar will be waiting. 

The Dexit hype has failed to materialise, with only a small number of companies moving their headquarters to other states. The sweeping reforms to Delaware’s corporate law contained in SB21 have helped companies, by reducing the scope, and therefore the cost, of books and records discovery requests – a bug bear for many companies – defense counsel told us. But the state’s Chancery Court judges are viewed to be politically polarised, if not overtly friendly to plaintiffs. The erosion of the Caremark ruling has made it easier to file derivative suits against companies in the state, which will be harder for companies to defend, our survey found.

For further insights, predictions, and the complete findings from our interviews with top US securities practitioners, read the full Defense Counsel Survey here.