SAR Securities Litigation Risk Report - 1H 2026

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U.S. Securities Litigation Risk Report – 1H 2026

The analytical tabulations presented herein provide dedicated risk and investment professionals with transparent, data-driven insights into the frequency and severity of Adverse Corporate Events These insights help identify corporate disclosure trends that increase the likelihood of private securities-fraud litigation or enforcement actions brought by the Securities and Exchange Commission against directors and officers of companies listed on the NYSE or NASDAQ Our analysis is based on close-to-close stock price performance, adjusted for general market and sector-specific factors, to isolate the impact of company-specific information SAR provides unique, verifiably independent, factual analytics that reveal how equity investors respond to material disclosures Our semi-annual publication of this data equips risk and investment professionals with actionable insights of securities litigation risk of U S -listed companies, empowering practitioners with data driven advantages based on the uniform application of event study analysis

Adverse Corporate Events (“ACEs”). SAR categorizes ACEs that have materialized during a two-year period prior to June 30, 2026 into three mutually exclusive categories This classification is based on a single-firm event study methodology, which tests the stock price impact of each corporate disclosure for a given issuer All ACEs identified by SAR exhibit a close-to-close stock price decline that is statistically significant at the 95% confidence standard The analysis controls for broader market effects using the S&P 500 Total Return Index and adjusts for sector-specific influences using the target company’s Global Industry Classification Standard (“GICS®”) index

TYPE I ACE:

• Stock price declined by a statistically significant amount at the 95% confidence level over the close-to-close event window, driven by company-specific news

• Company issues a public statement via a press release, or a representative discloses information at a press event or earnings call

TYPE II ACE:

• Stock price declined by a statistically significant amount at the 95% confidence level over the close-to-close event window, driven by company-specific news

• Company made filings with the Securities and Exchange Commission (“SEC”), and no other relevant company news was identified

HIGH-RISK ACE:

• Stock price declined by a statistically significant amount at the 95% confidence level over the close-to-close event window, driven by company-specific news

• Company issues a public statement via a press release, or a representative discloses information at a press event or earnings call

• Company made filings with the SEC

U.S Securities Litigation Risk. SAR quantifies the potential securities litigation risk of an issuer according to the frequency and severity of High-Risk ACEs� The estimate is equal to an issuer’s cumulative market capitalization losses on all High-Risk ACEs identified during the corresponding two-year evaluation period�

The quantification of securities litigation risk presented herein is based on the economic impact of a company’s corporate disclosures on its common stock traded on the NYSE or NASDAQ. It does not constitute potential litigation exposure, aggregate damages, or liability that may be asserted by private investor plaintiffs or regulatory agencies in securities-related claims or actions against the issuer or individual defendants.

SAR Risk Score®. The SAR Risk Score® is a proprietary score assigned to every public company listed on the NYSE or NASDAQ according to the frequency and severity of ACEs during a two-year period. The SAR Risk Score® is equal to the market capitalization losses observed on High-Risk ACEs divided by the issuer’s market capitalization as of June 30, 2026� For example, company ABC, Inc�’s market capitalization is $500 million� SAR identified three High Risk ACEs during the preceding two years that amounted to $100 million in market capitalization losses� The SAR Risk Score® for ABC, Inc is 20%� SAR caps risk scores at 100% for issuers whose market capitalization losses on High-Risk ACEs exceed the company’s current market capitalization�

Analytical Tabulation. The report presents tabulated summary analytics on three types of ACEs across eleven sectors, classified according to GICS®, and segmented by market capitalization� Large, Mid and Small Cap defendant companies are defined as those with market capitalizations greater than $10 billion, greater than $2 billion but less than $10 billion, and less than $2 billion, respectively, as of the end of the evaluation date�

All new data and analysis presented herein are based on corporate disclosures disseminated to investors between the close of trading on June 30, 2024, and the close of trading on June 30, 2026 (hereafter, June 2026)�

U.S. Securities Litigation Risk

The securities litigation risk of U.S. public companies is driven by the frequency and severity of ACEs that are identified through the application of the court-approved event study methodology. The identified ACEs, originating from corporate disclosures, had a significant impact on stock price performance during the relevant trading day and were publicly disseminated within the preceding two years.

Frequency: Number of High-Risk ACEs

Independent single-firm event study results across 4,648 U S public companies indicate a rise in the average number of High-Risk ACEs relative to the semi-annual period ending December 31, 2025 (hereafter, December 2025) The average frequency increased by 1 86%, from 2 44 to 2 49 events per company Overall, the number of High-Risk ACEs rose from 11,392 in December 2025 to 11,557 in June 2026

The three sectors with the highest average number of High-Risk ACEs are Energy, Consumer Staples, and Industrials with 2 74, 2 74 and 2 73 events per company, respectively This marks the first time since SAR published its inaugural Risk Report in September 2024 that Energy has ranked first among all sectors in average High-Risk ACEs, underscoring the sector’s current heightened vulnerability Relative to December 2025, the lowest sector average increased by 10 8%, from 1 83 to 2 03 High-Risk ACEs per company In both reporting periods, Financials recorded the lowest average At the issuer level, 29 companies recorded 10 or more HighRisk ACEs during the evaluation period, up from 26, or 11 5%, relative to December 2025 Companies with no recorded High-Risk ACEs increased from 830 to 853, a 2 8% rise compared to December 2025

Trends in High-Risk ACEs by market capitalization category indicate that such events remain most prevalent among Large Cap companies In June 2026, Large Caps averaged 3 20 High-Risk ACEs per company, up 6 3% from December 2025 Mid Caps, however, experienced the largest increase across the three market capitalization categories, with the average rising 7 6%, from 2 56 to 2 75 events per company In contrast, Small Caps recorded a 3 2% decline, with the average falling to 2 17 HighRisk ACEs per company

Information Technology

Consumer

Communication

$5,661.32 2,565.26 2,513.59 1,830.55 1,524.98 1,459.46 877.90

Severity: Market Capitalization Losses on High-Risk ACEs

The magnitude of severity amounts to the cumulative market capitalization declines observed during the closeto-close event windows on High-Risk ACEs over the preceding two years Figure 1a ranks the eleven sectors according to the magnitude of market capitalization losses impacted by High-Risk ACEs At approximately $5 7 trillion, the Information Technology sector recorded the largest cumulative market capitalization losses, with its share of global quantum increasing from 28 9% in December 2025 to 32 6% in June 2026 Financials and Health Care followed as the second and third largest contributors to overall losses, respectively In the aggregate, total losses rose by $3 3 trillion, a 23 4% rise from December 2025, indicating a marked increase in the severity of High-Risk ACEs No sector experienced a decline in market capitalization losses during the same period

Figure 1b presents market capitalization losses per HighRisk ACE across sectors Real Estate recorded the lowest losses per event at $0 44 billion In contrast, Information Technology reported the highest market capitalization losses per High-Risk ACE at $3 39 billion, representing a substantial 41 7% increase from $2 39 billion in December 2025 Energy was the only sector to experience a decline in losses per High-Risk ACE, falling by 3 7% For the fourth consecutive semester, Information Technology ranked first in both Figures 1a and 1b, highlighting the sector’s sustained exposure to heightened securities litigation risk for these issuers Overall, six of the eleven GICS® sectors experienced alleged losses exceeding $1 billion per High-Risk ACE

U.S. Securities Litigation Risk Quantification

A high-level snapshot of U.S. securities litigation risk may be evaluated by the ratio of a sector’s cumulative market capitalization losses from High-Risk ACEs to its current aggregate market capitalization.

Figure 1c presents the change in the ratio of market capitalization losses to each sector’s current aggregate market capitalization relative to December 2025 Nine of the eleven sectors experienced an increase in their sectoral market capitalization loss ratio Real Estate recorded the most pronounced increase, with its ratio rising sharply from 12 62% to 18 55%, a 5 93 percentage point uptick The expansion was driven by both a substantial rise in market capitalization losses and a decline in aggregate market capitalization Financials followed closely, with its ratio increasing by 5 69 percentage points from 14 95% to 20 64% Across sectors exhibiting increased securities litigation risk, the average ratio rose by 2 55 percentage points, compared with a 1 29 percentage point increase in December 2025 Energy and Industrials, the only two sectors to record declines in their sectoral market capitalization loss ratio, registered an average decrease of 0 74 percentage points

Percentage Points Change

Figure 1d ranks each sector by the ratio of market capitalization losses to each sector’s aggregate market capitalization as of the end of the evaluation period The lowest ratio was observed in Utilities at 8 51%, while Health Care recorded the highest ratio at 28 75% This ratio highlights the potential magnitude of securities litigation risk for each sector by accounting for the cumulative material impact on stock price performance when constituent companies issued corporate statements and filed documents with the SEC

The ratio of market capitalization losses to market capitalization may or may not align closely with the sector’s median SAR Risk Score® While the average absolute difference between the two measures across all eleven sectors is approximately 0 47 percentage points, certain sectors exhibit larger divergences The sector-specific median SAR Risk Score® is most appropriately applied when assessing company-specific risk on a near-real time basis It allows risk managers and investment professionals to evaluate the relative risk of a particular constituent company with respect to the median constituent In contrast, a sector’s ratio of market capitalization losses to aggregate market capitalization serves as a measure of absolute risk It quantifies a sector’s overall exposure to securities litigation based on the scale of capitalization losses associated with material corporate disclosures Understanding the interaction between these two measures, especially in the presence of skewed distributions or disproportionate capitalization influence, provides deeper insight into both systemic and company-specific risk dynamics

SAR quantifies the median SAR Risk Score® at the sector, group, industry and sub industry level See Appendix I for a breakdown across all sectors

All Sectors

U.S. Securities Litigation Risk

Key Takeaways

• The aggregate quantum of securities litigation risk demonstrates that companies listed on the NYSE and NASDAQ experienced approximately $17 4 trillion in market capitalization losses as of June 30, 2026 This figure reflects the cumulative single-day, statistically significant stock price declines associated with High-Risk ACEs over the preceding two years

• The securities litigation risk increased across all eleven sectors relative to December 2025, with the largest relative increases recorded in Real Estate (45 05%), Financials (40 35%), and Information Technology (39 02%)

• Single firm event study analyses on 11,557 corporate disclosures of 4,648 U S public companies indicate that High-Risk ACEs continue to exhibit the highest frequency among SAR’s three ACE categories The average frequency and aggregate severity of High-Risk ACEs increased by 1 86%, and 23 40%, respectively, relative to December 2025

• The median SAR Risk Score® for U S -listed companies is 17 93% Health Care exhibits the highest median SAR Risk Score® at 27 55%, followed by Consumer Discretionary and Consumer Staples with 24 57% and 24 45%, respectively

SAR analyzes the actively trading common stock and ADR issuances of every public company on the NYSE or NASDAQ with sufficient data to perform a robust event study analysis that applies court-accepted statistical standards using a uniform two-year evaluation period and assigns a company-specific SAR Risk Score® This column displays the number of issuers analyzed in each sector

[3] Adverse Corporate Events are statistically significant negative single-trading day stock price movements corresponding to company-specific news identified by SAR There are three types of ACEs Type I ACEs are company-originating news that do not include regulatory filings (i e , press releases, earnings calls, corporate statements) Type II ACEs relate to corporate disclosures made via filings with the SEC High-Risk ACEs include both company-originating news and regulatory filings made with the SEC

[4] The average number of Type I ACEs identified within the sector

[5] The average number of Type II ACEs identified within the sector

[6] The average number of High-Risk ACEs identified within the sector

[7] The cumulative quantum of market capitalization losses associated with identified High-Risk ACEs for issuers during the two-year period preceding June 30, 2026

U.S. Securities Litigation Risk

Key Takeaways

• The Energy sector’s securities litigation risk increased relative to December 2025, evidenced by a 12�2% rise in alleged market capitalization losses, equivalent to roughly $35�96 billion�

• The average frequency of High-Risk ACEs increased from 2�36 to 2�74 events, a 16�0% rise� This was the second largest percentage increase in High-Risk ACE frequency across all sectors, behind only Real Estate�

• Energy ranked first in securities litigation risk footprint (see Appendix II), with four out of five contributing factors increasing relative to December 2025�

• The median SAR Risk Score® of the 213 constituent companies in the Energy sector is 14�64%� The Large, Mid, and Small Cap median scores are 8�30%, 14�08% and 20�59% respectively�

Table 2: Energy — Frequency and Severity of Adverse Corporate Events

U.S. Securities Litigation Risk

Key Takeaways

• The securities litigation risk in the Material sector rose relative to December 2025, driven by an increase in the severity of High-Risk ACEs

• The increase in market capitalization losses reflects greater severity in High-Risk ACEs Average losses per High-Risk ACE increased from $0 56 billion to $0 66 billion, representing a 17 85% uptick

• The average frequency of High-Risk ACEs remained stable It rose marginally from 2 57 to 2 58 events, or 0 4%

• The median SAR Risk Score® of 226 constituent companies in Materials is 14 50% The Large, Mid, and Small Cap median scores are 11 24%, 19 42%, and 22 77%, respectively

Table 3: Materials — Frequency and Severity of Adverse Corporate Events

U.S. Securities Litigation Risk

Key Takeaways

• Market capitalization losses in the Industrials sector increased from $1 3 trillion to $1 5 trillion, representing a 14 11% increase relative to December 2025 This growth was driven by increases in the frequency and severity of High-Risk ACEs

• The growth in market capitalization outpaced the growth in alleged losses The sector’s market capitalization increased from $7 1 trillion to $8 4 trillion, or 17 74%, during the same period

• The ratio of market capitalization losses to market capitalization declined from 18 75% to 18 18% Industrials was one of only two sectors to record a decline in this ratio, alongside Energy

• The median SAR Risk Score® of 681 constituent companies in Industrials is 21 08% The Large, Mid, and Small Cap median scores are 15 69%, 20 96%, and 28 98%, respectively

U.S. Securities Litigation Risk

Key Takeaways

• The Consumer Discretionary sector’s securities litigation risk held steady compared to December 2025 The ratio of market capitalization losses to market capitalization increased from 19 90% to 20 58%

• Market capitalization losses increased by $7 1 billion, or 0 39% Losses per High-Risk ACE rose from $1 24 billion to $1 34 billion, an 8 41% uptick Market capitalization decreased 2 94%

• The sector registered the largest relative decline in the frequency of High-Risk ACEs, falling from 2 67 to 2 59 events, or 3 0%

• The median SAR Risk Score® of 527 constituent companies in Consumer Discretionary is 24 57% The Large, Mid, and Small Cap median scores are 16 32%, 26 67%, and 25 16%, respectively

U.S. Securities Litigation Risk

Key Takeaways

• Market capitalization losses in the Consumer Staples sector increased from $761 05 billion to $877 90 billion, a 15 35% increase relative to December 2025 This growth was driven by increases in the frequency and severity of High-Risk ACEs

• The average frequency of High-Risk ACEs increased by 7 1%, rising from 2 56 to 2 74 events This sector had the second highest average frequency across all sectors, trailing only the Energy sector Average losses per High-Risk ACE rose $0 20 billion, from $1 59 billion to $1 79 billion, or 12 53%

• The share of alleged losses attributed to High-Risk ACEs in the Consumer Staples sector has remained broadly stable over the past year and a half, averaging 5 2% of aggregate severity

• The median SAR Risk Score® of 179 constituent companies in Consumer Staples is 24 45% The Large, Mid, and Small Cap median scores are 20 74%, 21 26%, and 27 38%, respectively

6: Consumer Staples — Frequency and Severity of Adverse Corporate Events

U.S. Securities Litigation Risk

• The securities litigation risk increased relative to December 2025, driven by increased severity in High-Risk ACEs

• Average losses per High-Risk ACE rose from $0 87 billion to $1 04 billion, representing a 18 68% uptick Average frequency of High-Risk ACEs fell by 2 5%

• Health Care dropped to the third largest contributor of market capitalization losses on High-Risk ACEs, accounting for 14 5% of aggregate losses, down from 15 8% It had held the second largest position for over a year

• The median SAR Risk Score® of 985 constituent companies in Health Care is 27 55% The Large, Mid, and Small Cap median scores are 23 66%, 15 42%, and 32 31%, respectively

U.S. Securities Litigation Risk

Sector Market Capitalization Losses Amount to $2.6 Trillion

Key Takeaways

• The sector exhibited the second largest relative and absolute increase in securities litigation risk among the eleven sectors, with market capitalization losses rising by $738 75 billion, or 40 45%, relative to December 2025

• Financials surpassed Health Care as the second largest contributor of aggregate losses associated with High-Risk ACEs, increasing its share from 13 0% to 14 8%

• Despite increasing its average number of High-Risk ACEs from 1 83 to 2 03 events, Financials exhibited the lowest average among all other sectors

• The median SAR Risk Score® of 809 constituent companies in Financials is 6 35% The Large, Mid, and Small Cap median scores are 10 72%, 8 45%, and 3 24%, respectively

Table 8: Financials — Frequency and Severity of Adverse Corporate Events

U.S. Securities Litigation Risk

Trillion

Key Takeaways

• The Information Technology sector remains the largest contributor of market capitalization losses on High-Risk ACEs, totaling $5 7 trillion, an increase of approximately $1 6 trillion, or 39 02%, since December 2025 A third of aggregate market capitalization losses came from IT, up from 28 9%

• The sector had the highest market capitalization losses per High-Risk ACE at $3 39 billion Losses per High-Risk ACE increased by $1 0 billion, or 41 68%

• Market capitalization losses increased substantially; however, the ratio of market capitalization losses to market capitalization rose only marginally, by 2 00 percentage points This limited increase reflects the strong growth in market capitalization over the same period, which expanded from $24 9 trillion to $30 8 trillion, representing a 23 9% increase

• The median SAR Risk Score® of 621 constituent companies is 23 06% The Large, Mid, and Small Cap median scores are 18 03%, 21 84%, and 30 11%, respectively

Table 9: Information Technology — Frequency and Severity of Adverse Corporate Events

U.S. Securities Litigation Risk

Key Takeaways

• The securities litigation risk increased relative to December 2025, driven by increased severity in High-Risk ACEs Market capitalization fell marginally by 0 70%

• Market capitalization losses increased by $228 70 billion, or 18 58% Alleged losses per High-Risk ACE rose from $2 11 billion to $2 48 billion, or 17 58%, the second highest amount among all sectors

• The average frequency of High-Risk ACEs remained virtually unchanged, increasing by just 0 1%

• The median SAR Risk Score® of 257 constituent companies in Communication Services is 22 68% The Large, Mid, and Small Cap median scores are 19 78%, 14 20%, and 26 75%, respectively

U.S. Securities Litigation Risk

Key Takeaways

• Alleged market capitalization losses increased from $138 34 billion to $153 48 billion, or 10 95%, relative to December 2025 Frequency and severity of High-Risk ACEs increased by 7 8% and 4 12%, respectively

• The ratio of market capitalization losses to market capitalization exhibited the least variation among all sectors relative to December 2025, increasing only from 8 25% to 8 51%, a difference of 0 26 percentage points

• The sector comprises merely 0 9% of aggregate market capitalization losses on High-Risk ACEs It has consistently ranked as the second smallest contributor of aggregate severity across all previous semi-annual reports

• The median SAR Risk Score® of 88 constituent companies in Utilities is 6 18% The Large, Mid, and Small Cap median scores are 3 98%, 7 89%, 19 29%, respectively

U.S. Securities Litigation Risk

Sector Market Capitalization Losses Amount to $67.2 Billion

Key Takeaways

• The securities litigation risk in the Real Estate sector exhibited the largest relative increase among all sectors compared to December 2025 Alleged market capitalization losses rose 45 05%, from $46 30 to $67 15

• The sector also had the largest increase in the ratio of market capitalization losses to market capitalization, rising from 12 62% to 18 55% In addition to the substantial increase in alleged losses, the increase is driven by a modest 1 3% decrease in market capitalization

• Alleged losses per High-Risk ACE increased, on average, from $0 36 billion to $0 44 billion, representing a 22 95% uptick The frequency of High-Risk ACEs also increased by 21 8%, the largest relative increase among all sectors

• The median SAR Risk Score® of 62 constituent companies in Real Estate is 15 64% The Large, Mid, and Small Cap median scores are 13 91%, 18 57%, and 16 00%, respectively

Securities Analytics Research

SAR is the leading data analytics company specialized in securities litigation risk of public companies that trade on the NYSE or NASDAQ.

Our goal is to harmonize the application of event study analysis across the risk management industry by following the standards adopted by the Federal Judiciary and developed in academia to optimize executive and financial risk-transfer solutions through responsible innovation in technology and data science

Our organization is focused on the proactive and uniform application of the court-accepted event study methodology to identify securities litigation risks more accurately and quantify the corresponding economic impact on the market capitalization of U S -listed companies SAR delivers value through transparency by proactively monitoring corporate disclosures of U S and non-U S Issuers to detect Adverse Corporate Events that have a material impact on stock price performance

Our company empowers leading multinational insurance carriers, re-insurers, risk management executives, legal counsel and investment professionals with proven securities litigation risk analytics and high-quality data licensing solutions We have high standards of raw data requirements and quality control to ensure the tried-and-true technologies of the SAR Platform® deliver superior data-driven advantages to better protect corporate directors and officers of companies that choose to trade in American stock exchanges — the gold standard.

Our analytics solutions apply highly specialized data science to identify and quantify securities litigation risks that corporate directors and officers of public companies may face from company-specific disclosures that materially impact an issuer’s stock price performance SAR maintains two comprehensive industry-leading databases that comprise the knowledge bank of the SAR Platform® The ACE Database catalogs stock price performance data on all corporate disclosures that are disseminated via corporate press releases or announcements and filings made with the Securities and Exchange Commission The SCA Database catalogs stock price performance data on all corporate disclosures that are claimed to be fraud-related by investor plaintiffs in private securities fraud litigation Documented standard operating procedures and assigned process owners in both data science and software engineering ensure that SAR remains at the forefront of responsible technological innovation backed by human accountability to deliver unmatched insights on the securities litigation risks facing directors and officers of public companies

We invite you to learn more about SAR by taking the time to read our industry-leading thought leadership at sarlit.com/thought-leadership.

U.S. Securities Litigation Report Disclaimer

This independent research report presents SAR’s quantification of securities litigation risk for both U S and non-U S issuers listed on the NYSE or NASDAQ The analysis is based on the proactive and uniform application of the court-accepted event study methodology SAR continuously tests stock price performance over the corresponding close-to-close event window in response to corporate disclosures disseminated by issuers This approach enables more precise identification of Adverse Corporate Events, which are categorized based on the issuer’s specific disclosure mechanism All content published by SAR and presented in this report is based on securities analytics and research performed by professionals employed by the organization SAR does not rely on any machine learning (ML) or artificial intelligence (AI) to produce the quantitative and statistical analyses presented herein or via the SAR Platform® and ACE Alert® subscription service SAR actively maintains two highly comprehensive databases that archive and categorize all ACEs of U S and non-U S issuers in addition to all alleged corporate disclosures that are claimed to be fraud-related by investor plaintiffs in private securities-fraud class action litigation SAR ranks all public companies that trade on the NYSE or NASDAQ according to the SAR Risk Score® on a near-real time basis and publishes summarized analytical tabulations and trends on a semi-annual basis

Securities litigation risks associated with observed Adverse Corporate Events identified by SAR may or may not materialize into securities claims filed by allegedly harmed shareholders Such claims, if brought, may be directed against the corporate directors and officers of the defendant issuers, or against the underwriters of the related securities offerings

Securities claims may include, but are not limited to, securities class actions whereby investor plaintiffs allege violations of the federal securities laws under Section 11, Section 12(a)(2), and Section 15 of the Securities Act of 1933 (“Securities Act”), and under Section 10(b) and 20(a) of the Securities Exchange Act of 1934 and Securities Exchange Commission (“SEC”) Rule 10b-5 promulgated thereunder (“Exchange Act”) Securities litigation risks may also materialize from enforcement actions filed in federal court by the SEC for alleged violations of the anti-fraud provisions of the securities laws of the Exchange Act, Securities Act, or the Investment Advisors Act of 1940 The economic impact of securities litigation risks presented in this equity research report amounts to the cumulative market capitalization declines over close-to-close event windows on all High-Risk ACEs during a two-year evaluation period identified by SAR’s application of the court-accepted event study methodology

SAR Risk Report Event Study Application Disclosure

The results of the analyses presented in this report employ a court-accepted event study methodology to identify ACEs ACEs are identified by estimating statistically significant, single-day negative stock price movements that coincide with company specific news For each issuance analyzed, statistically significant price movements are identified using a single-firm control regression model, incorporating a minimum of 100 trading days of historical observations The model adjusts for both general market and industryspecific factors The general market factor is represented by the S&P 500 Total Return Index, while industry-specific factors are derived from indices aligned with the target company’s GICS® classification The applied methodology is conducted after market close and is limited to public companies listed on the NYSE or NASDAQ Each analysis covers a two-year retrospective window from the applied evaluation date and assesses stock price performance in response to all company-specific corporate disclosures Economic estimates by SAR are only estimates or projections, and actual results may vary, and may vary substantially, from those estimates or projections, which are based on many variables, assumptions, and forecasts, many of which are beyond the control of SAR and any of which may present differences with estimates that are quantified using different techniques that may or may not be submitted by officers of the court for review by the Federal Judiciary No fraud or wrongdoing of any kind is alleged or implied by any such results derived by SAR and presented herein in this equity research report.

Sources: SAR ACE Database as of June 30, 2026, FINRA, Securities and Exchange Commission, S&P Global Market Intelligence, and S&P Down Jones Indices

To have a conversation about our data analytics solutions or for any technical inquiries, please contact us to learn more

Report

Authors: Nessim Mezrahi CEO

T: 202.891.360

E: Nessim@sarlit.com

Stephen Sigrist, MFE Senior Vice President

T: 202.891.3652

E: Stephen@sarlit.com

Rolando Hernandez, MSc Senior Analyst

T: 202.436.9994

E: Rolando@sarlit.com

Appendix I: Median SAR Risk Score®, by GICS® Classification

The following tables present the median SAR Risk Score® by Group, Industry, and Sub-Industry, as defined by the Global Industry Classification Standard (“GICS®”) These scores are based on a sample of 4,648 companies The last column shows the change in median SAR Risk Score® between December 2025 and June 2026, expressed in percentage points A positive value (e g , +1.0) indicates a one percentage point increase in the median score, signaling a deterioration in securities litigation risk Conversely, a negative value (e g , –1.0) indicates a one percentage point decrease, reflecting an improvement in risk

ENERGY

MATERIALS

INDUSTRIALS

INDUSTRIALS

CONSUMER DISCRETIONARY

CONSUMER STAPLES

HEALTH CARE

FINANCIALS

INFORMATION TECHNOLOGY

COMMUNICATION SERVICES

UTILITIES

REAL ESTATE

Appendix II: U.S. Securities Litigation Risk Footprint

SAR evaluates trends in securities litigation risk footprint across sectors using a two-step process. First, it maps five key variables— Type I ACEs, Type II ACEs, High-Risk ACEs, Market Capitalization, and Market Capitalization Losses—onto a polar coordinate system, with each variable occupying a distinct axis. This produces a sector-specific five-sided polygon. Second, for the purposes of this report, SAR calculates the area enclosed by the five plotted points at two points in time, corresponding to evaluation periods ending December 31, 2025 (December 2025), and June 30, 2026 (June 2026). The change in a sector’s footprint is calculated as the absolute difference between the two areas, divided by the area of the five-sided polygon in December 2025.

According to this methodology, the Energy, Consumer Discretionary and Health Care sectors exhibited the greatest changes in their footprints across the aforementioned five factors The relevant metrics for December 2025 and June 2026, expressed as percentages of their respective global quantum to enable cross-sector comparisons, are presented in the figures below

Energy. The Energy sector experienced the largest change in its securities litigation risk footprint among all sectors As of December 2025, the Energy sector’s proportion of aggregate High-Risk ACEs represented approximately 4 40% of the global quantum, increasing to 5 05% by June 2026 As shown in Figure A1, all risk factors except one increased within the Energy sector The most pronounced change occurred in Type II ACEs, which rose by 1 79 percentage points Over the same period, Energy also registered an increase in its contribution to aggregate market capitalization, increasing its share from 3 77% to 4 22% In contrast, the sector’s share of market capitalization losses declined from 2 09% to 1 90%, despite total alleged losses attributable to the sector increasing by $35 96 billion

Health Care Figure A3 illustrates the changes in the securities litigation risk footprint in the Health Care sector Similar to the Consumer Discretionary, Health Care recorded declines across all five factors relative to their respective global totals The most pronounced reductions occurred in the proportions of Type I and Type II ACEs, which declined by 4 63 and 3 86 percentage points, respectively From December 2025 to June 2026, the sector’s share of total U S equity market capitalization decreased by 0 71 percentage points to approximately 9 72% This decline in relative market capitalization occurred despite the Health Care sector adding $274 83 billion in market capitalization, indicating that growth in the broader U S equity market outpaced that of the sector The share of market capitalization losses fell by 1 33 percentage points to 14 47%

Consumer Discretionary. Figure A2 illustrates the changes observed in the Consumer Discretionary sector, which recorded the second largest shift in securities litigation risk footprint The results indicate a broad-based decline in the sector’s contribution across all five relevant factors, with the share of losses associated with High-Risk ACEs exhibiting the most pronounced decrease, falling by 2 42 percentage points Moreover, by the end of the evaluation period on June 30, 2026, the Consumer Discretionary sector accounted for approximately 9 89% of aggregate market capitalization across all sectors, down from 11 28% in December 2025 This reduction reflects a decline in the sector’s market capitalization from $9 2 trillion to $8 9 trillion The frequency share of all ACE types also decreased, with Type I ACEs recording the largest decline, followed by High-Risk and Type II