In-House Counsel Warn of Mounting Risks as Service of Process Volume Surges

Article content

Article content

Article content

Article content

WILMINGTON, Del. — The volume of service of process (SOP)—the legal procedure by which one party formally notifies another of a legal action—is surging across the U.S., amplifying operational pressure and compliance risk for in-house legal teams. This is according to a new nationwide study commissioned by CSC, industry-leading registered agent and compliance service provider.

Article content

Article content

CSC surveyed 250 senior in-house counsel across the U.S. and found that rising SOP volume and growing concerns around data accuracy are intensifying both risk and workload pressure.¹ Respondents cited data accuracy as a significant challenge to SOP management (61%), followed by rising SOP volume (56%). More than three-quarters (76%) said their departments are spending “too much” or “excessive” time managing SOP, underscoring the growing operational demands placed on legal teams.

Article content

Article content

The rising complexity of SOP, driven by new and differing state rules is increasing compliance exposure. Most respondents (59%) indicated that managing SOP across multiple states with varying requirements is leading to operational slips, while a third (34%) flagged problems with fragmented intake across states. As workloads expand, many departments are coordinating with multiple external partners and internal systems that apply differing standards for SOP data and privacy management. The patchwork of state-by-state privacy regulations further compounds these challenges, increasing the potential for inconsistencies in how sensitive information is handled.

Article content

“With a more complex SOP process it becomes more challenging to stay within the bounds of these regulations, which carries the risk of financial and reputation damage,” notes Paul Mathews, director of CSC Product Management. “In this environment, partnering with experienced registered agents that combine deep SOP expertise and integrated technology has become essential to maintain compliance, consistency, and speed.”

Article content

The rapid rise of mass arbitration is adding to these challenges, with 93% of respondents identifying it as a key concern that increases the risk and complexity of managing SOP. Three-quarters (73%) have already observed a rise in reporting errors.

Article content

Technology is introducing new solutions—and challenges

Article content

Legal and compliance teams are increasingly turning to technology to manage increased pressure, but nearly all (96%) respondents expressed concerns that current technology platforms are unable to deal with SOP demands in a timely and accurate manner with more than half saying they’re very concerned.

Article content

Almost all respondents (97%) said they use AI for SOP in some capacity, with just over a third (36%) describing their adoption as significant. Many also expected AI to further increase filing volume.

Article content

Article content

“One of AI’s core strengths is pattern recognition. Plaintiff firms will use it to help identify more potential claimants,” adds Mathews. “AI sits as a great opportunity and a threat. Used well, it offers many benefits and can save a lot of time. But, used poorly, it can muddy the waters, creating challenges around data integrity and accuracy.”

Article content

Legacy infrastructure and workforce constraints are also hindering performance. 71% of respondents said multiple, non-integrated systems hinder SOP management, while 59% still engage in some manual tracking or record keeping, and nearly half (49%) report using outdated technology that slows operations and increases the risk of errors.

Article content

To relieve pressure and improve scalability, 70% of departments expect to increase SOP outsourcing in 2025, with 81% anticipating further growth within the next three years as legal teams seek specialized, tech-enabled partners capable of consistently managing the SOP process.

Article content

As the trusted partner of choice for more than 90% of the Fortune 500 and founded in 1899 to simplify the way corporations were formed, operated, and maintained compliance, CSC leverages decades of registered agent and SOP experience, combining expert service with advanced technology to manage complex processes across states with precision and speed.

Article content

To receive a copy of CSC’s report, “The State of Service of Process in 2025: Riding the Wave of Surging SOP Demand,” please contact us at

Article content

Article content

.

Article content

About CSC

Article content

CSC is the trusted partner of choice for more than 90% of the Fortune 500^®, more than 90% of the 100 Best Global Brands (Interbrand^®), and more than 70% of the PEI 300. We are the world’s leading provider of global business administration and compliance solutions, specialized administration services to alternative asset managers across a range of fund strategies, transactions involving capital markets participants in both public and private markets, domain name system management and digital brand and fraud protection, and corporate tax software solutions. Founded in 1899 and headquartered in Wilmington, Delaware, USA, CSC prides itself on being privately held and professionally managed for more than 125 years. CSC has office locations and capabilities in more than 140 jurisdictions across Europe, the Americas, Asia Pacific, and the Middle East. We are a global company capable of doing business wherever our clients are—and we accomplish that by employing experts in every business we serve. We are the business behind business^®. Learn more at cscglobal.com.

Article content

Article content

Article content

Article content

Article content

View source version on businesswire.com:

Article content

Article content

Article content

Contacts

Article content

For more information:

Article content

Article content

CDR

Article content

Article content

Amber Liu

Article content

Article content

Article content

CSC

Article content

Article content

Laura Crozier

Article content

Article content

PR Manager

Article content

Article content

Article content

Article content

Article content

Article content