C-suite concerns grow as large jury verdicts threaten business survival

By: Sidra Safri

September 25, 2025 – Nuclear verdicts are becoming more common, and business leaders say just one of these large, multimillion-dollar jury verdicts could put them out of business.

In its survey of 1,000 business leaders, Sentry’s 2025 C-Suite Stress Index found that:

• For the vast majority (82%), a multimillion-dollar verdict would likely put them out of business.

• Nearly three-quarters (72%) of executives say increased litigation and multimillion-dollar-verdicts are a significant problem in their industry.

• Almost a quarter (24%) say recent increases in nuclear verdicts are a “massive” problem for companies in their industry.

Nuclear verdicts are jury verdicts that exceed $10 million. These damaging verdicts, driven by legal system abuse—and now fueling thermonuclear verdicts of more than $100 million—threaten businesses throughout the United States.

Several factors are driving the surge in nuclear and thermonuclear verdicts, and understanding what factors lead to nuclear verdicts can help businesses manage their litigation risk. A few reasons for these verdicts include:

• Increased attorney involvement: Higher plaintiff attorney involvement—including aggressive advertising and increased court filings—have led to an increased frequency of lawsuits at the state level, as well as to clogged court systems that result in a slowed judicial process that delays relief for plaintiffs. Additionally, evolving legal tactics that appeal to jurors’ sense of fear—rather than the facts of a case—have contributed to larger, more severe jury awards.

• Public perception: Growing skepticism toward large organizations is fostering an increase in juries that side favorably with plaintiffs.

• Third-party litigation funding: Lawsuits increasingly are being funded by third-party investors, including hedge funds and foreign governments. In exchange, investors may determine the terms of settlement and get a significant portion—usually the vast majority—of any award in return for their investment. Because injured parties aren’t in control of the decisions of their own lawsuits, investors and foreign governments are prolonging the time it takes to complete claims and lawsuits. This means lawsuits can drag on for years, and early and reasonable settlement opportunities are delayed or denied—leading to an inflation of settlements.

The impacts and costs of nuclear verdicts go beyond the courtroom.

Businesses face mounting legal fees, multimillion-dollar settlements, and rising insurance premiums—while also suffering reputational damage that can take years to repair. Where third-party litigation is involved, injured parties may experience prolonged legal proceedings that prevent a full return to their private and working lives.

In the same survey of 1,000 business leaders, most said a multimillion-dollar verdict against their company could be enough to shut it down:

With nuclear and thermonuclear verdicts still on the rise, business leaders are doing what they can to create stability and predictability for their businesses by investing in safety and risk management.

Reinforcing safety culture—through policies, training, and regular meetings—has become a key focus for business leaders, along with increasing their insurance coverages.

When asked which steps their company has taken to reduce nuclear verdicts:

• 82% of business leaders are requiring employees to complete mandatory safety training or agree to a formal safety program.

• 59% said they’ve increased their liability insurance coverage to better protect against escalating legal risks and what-if scenarios.

Nuclear verdicts have fueled understandable concern for executives across industries and states—prompting important conversations about the need for legal system reform and transparency laws to prevent legal system abuse while maintaining a balanced environment for all parties.