SAR Securities Litigation Risk Report - Jan. 2026

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U.S. Securities Litigation Risk Report – January 2026

The analytical tabulations presented herein provide dedicated risk managers and investment professionals 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 disclosures SAR provides unique, verifiably independent, factual analytics that reveal how equity investors respond to financially material disclosures Our semi-annual publication of this data equips practitioners with actionable insights of securities litigation risk of U S -listed companies, empowering practitioners with well-informed risk management and equity investment strategies

Adverse Corporate Events (“ACEs”). SAR categorizes ACEs that have materialized during a two-year period prior to the evaluation date 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 from the designated evaluation date 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 the preceding trading day 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 January 2, 2024, and the close of trading on December 31, 2025 (hereafter, January 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 4,667 U S public companies indicate a rise in the average number of High-Risk ACEs compared to the 2025 H2 Risk Report (hereafter, July 2025) The average frequency increased by 4 33%, from 2 34 to 2 44 events per company In total, the number of High-Risk ACEs grew from 10,631 in July 2025 to 11,392 in January 2026

The three sectors with the highest number of average High-Risk ACEs were Information Technology, Consumer Discretionary, and Industrials with 2 74, 2 67 and 2 65 events per company, respectively All three sectors continued to rank among the top 3 for a second consecutive semester, highlighting their persistent vulnerability to ACEs No sector averaged fewer than 1 8 High-Risk ACEs during the two-year evaluation period At the issuer level, 26 companies recorded 10 or more High-Risk ACEs during the evaluation period up from 16, (or an increase of 62 5%), relative to July 2025 Companies with no recorded High-Risk ACEs decreased from 877 to 830, a 5 4% reduction compared to the same period

Trends in High-Risk ACEs by market capitalization category reveal that such events are more prevalent among Large Cap companies In January 2026, Large Caps reported an average of 3 02 events per company, representing a 11 3% increase from July 2025 Mid Caps saw a smaller increase, with the average rising from 2 51 to 2 56 events per company, or 2 0% Small Caps also recorded a modest rise, with the average number of High-Risk ACEs increasing by 2 8% to 2 24 events per company

Figure 1b: Market Capitalization Losses per High-Risk ACE

Information Technology Health Care

Consumer Discretionary

Communication

$4,072.35 2,224.43 1,826.50 1823.43 1,336.37 1,230.77

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 11 sectors according to the magnitude of market capitalization losses impacted by High-Risk ACEs At approximately $4 1 trillion, issuers in Information Technology exhibited the highest level of sector-specific market capitalization losses, comprising 28 9% of the global quantum Health Care and Financials followed as the second and third largest contributors to overall losses, respectively In the aggregate, total losses rose by $2 3 trillion, marking a 19 7% increase Relative to July 2025, only the Energy sector experienced a decline in market capitalization losses, declining from $318 78 to $294 77 billion

Figure 1b displays market capitalization losses per High-Risk ACE across sectors Real Estate recorded the lowest losses per event at $0 36 billion In contrast, Information Technology posted the highest losses per High-Risk ACE at $2 39 billion, reflecting an 8 0% increase Since July 2025, Energy and Utilities have been the only sectors to experience a decline in losses per High-Risk ACE For a third semester in a row, Information Technology sits at the top in both Figures 1a and 1b, underscoring the heightened securities litigation risk impacting directors and officers in the sector Health Care, on the other hand, sits second in aggregate market capitalization losses but is sixth lowest in losses 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 displays the change in the ratio of market capitalization losses to each sector’s current aggregate market capitalization relative to July 2025 Seven out of the 11 sectors increased their sectoral market capitalization loss ratio The Consumer Staples sector exhibited the most pronounced increase, with its ratio rising from 15 59% to 18 72%, representing a 3 12 percentage points uptick The increase is attributed to a notable rise in the severity of ACEs, with losses per High-Risk ACE climbing from $1 32 to $1 59 billion, or 20 99% Across all sectors that exhibited an increase in securities litigation risk, the average ratio rose by 1 29 percentage points, down from a 2 99 percentage points increase in July 2025 The sectoral market capitalization loss ratio declined in four sectors—Energy, IT, Communication Services, and Real Estate— registering an average decrease of 0 60 percentage points

Figure 1d ranks each sector by the ratio of market capitalization losses to each sector’s market capitalization as of the end of the evaluation period The range spans from 8 25% (Utilities) to 26 27% (Health Care) 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 difference between the two measures across all eleven sectors is approximately 2 34 percentage points, certain sectors exhibit larger divergences The sector-specific median SAR Risk Score® is most appropriately applied when assessing companyspecific 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 $14�1 trillion in market capitalization losses as of December 31, 2025� This figure reflects the cumulative single-day, statistically significant stock price declines associated with High-Risk ACEs over the preceding two years�

• Single firm event study analysis on 11,392 corporate disclosures corresponding to 4,667 U�S� public companies indicates 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 4�33% and 19�7%, respectively, relative to July 2025�

• The median SAR Risk Score® for U�S�-listed companies is 18�36%� Information Technology demonstrates the highest median SAR Risk Score® at 28.49%, followed by Health Care at 26.73%, and Consumer Discretionary at 25.15%.

[1] The Global Industry Classification Standard (“GICS”) is a widely used industry taxonomy developed by MSCI and S&P Dow Jones Indices All issuers are categorized into 11 major sectors

[2] 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 analyzed issuers 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 are company-originating news that do not include regulatory filings (i e , press releases, earnings calls, corporate statements ) Type II relates to corporate disclosures made via filings with the SEC High-Risk are both company-originating news and regulatory filings made with the SEC

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

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

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

[7] The cumulative quantum of market capitalization losses on identified High-Risk ACEs for issuers during the preceding two years from December 31, 2025

U.S. Securities Litigation Risk

Key Takeaways

• Securities litigation risk in the Energy sector declined relative to July 2025, driven by a decrease in the severity of High-Risk ACEs

• Market capitalization losses fell by 7 5%, or $24 billion, making Energy the sole sector to register a decline in market capitalization losses relative to July 2025 Losses per High-Risk ACE fell from $0 80 billion to $0 59 billion, a 26 5% decrease

• The average frequency of High-Risk ACEs, on the other hand, rose from 1 84 to 2 36, marking a 28 25% increase It is the largest percentage increase in High-Risk ACE frequency among all sectors

• The median SAR Risk Score® of the 212 constituent companies in the Energy sector is 14 85% The Large, Mid, and Small Cap median scores are 6 93%, 17 93% and 17 39% respectively

U.S. Securities Litigation Risk

Key Takeaways

• The Materials sector’s securities litigation risk sector rose compared to July 2025, evidenced by a 29 94% increase in market capitalization losses, equivalent to roughly $73 70 billion

• The rise in market capitalization losses reflects an increase in both frequency and severity of ACEs The average number of High-Risk ACEs and losses per High-Risk ACE increased by 10 44% and 14 49%, respectively

• Materials posted the second highest gain in market capitalization, up 22 95%, among all sectors relative to July 2025

• The median SAR Risk Score® of 223 constituent companies in Materials is 15 33% The Large, Mid, and Small Cap median scores are 8 78%, 12 83%, and 25 11%, respectively

U.S. Securities Litigation Risk

Key Takeaways

• The Industrial sector’s securities litigation risk rose compared to July 2025 despite a decrease in the frequency of High-Risk ACEs The ratio of market capitalization losses to market capitalization increased from 18 26% to 18 75%

• Market capitalization losses increased by $118 16, or 9 70% The increase occurred even as the average number of High-Risk ACEs in the sector declined from 2 70 to 2 65 events

• The Industrials sector maintained a relatively steady share of aggregate market capitalization losses, contributing to 9 5% of the global quantum, a slight decrease from 10 4% It remains the fifth greatest source of aggregate losses

• The median SAR Risk Score® of 675 constituent companies in Industrials is 19 39% The Large, Mid, and Small Cap median scores are 15 14%, 18 52%, and 24 25%, respectively

U.S. Securities Litigation Risk

Key Takeaways

• The securities litigation risk increased relative to July 2025, reflecting a marked uptick in the severity of High-Risk ACEs

• Market capitalization losses increased by $348 49 billion, or 23 63% Losses per High-Risk ACE rose from $1 02 billion to $1 24 billion, a 21 36% increase, the largest percentage increase among all sectors

• The frequency of High-Risk ACEs has not changed relative to July 2025

• The median SAR Risk Score® of 552 constituent companies in Consumer Discretionary is 25 15% The Large, Mid, and Small Cap median scores are 15 48%, 25 39%, and 30 76%, respectively

U.S. Securities Litigation Risk

Key Takeaways

• Consumer Staples recorded the greatest increase in securities litigation risk among all eleven sectors Market capitalization losses rose by $143 45 billion, representing a 23 31% increase

• The increase in securities litigation risk reflects a sharp rise in the severity of ACEs, with losses per HighRisk ACE climbing 20 99%, the second greatest gain among all sectors, trailing Consumer Discretionary

• Despite rising market capitalization losses, Consumer Staples continues to represent a relatively small share of the aggregate losses, increasing only slightly from 5 2% to 5 4%

• The median SAR Risk Score® of 187 constituent companies in Consumer Staples is 23 27% The Large, Mid, and Small Cap median scores are 17 01%, 21 31%, and 32 50%, respectively

U.S. Securities Litigation Risk

Sector Market Capitalization Losses Amount to $2.2 Trillion

Key Takeaways

• The securities litigation risk in the Health Care sector held steady compared to July 2025, though signs of an upward trend emerged The ratio of market capitalization losses to market capitalization increased from 25 88% to 26 27%

• The sector continues to be the second greatest contributor of market capitalization losses on High-Risk ACEs with $2 2 trillion, comprising 15 8% of aggregate losses

• Health Care leads all sectors in Small Cap representation, with Small Cap companies comprising 77 10% of the sector, over eight percentage points higher than Communication Services, the next highest

• The median SAR Risk Score® of 1,009 constituent companies in Health Care is 26 73% The Large, Mid, and Small Cap median scores are 18 27%, 16 72%, and 32 51%, respectively

Table 7: Health Care — Frequency and Severity of Adverse Corporate Events

U.S. Securities Litigation Risk

Sector Market Capitalization Losses Amount to $1.8 Trillion

Key Takeaways

• Financials experienced the second greatest increase in securities litigation risk among all eleven sectors, with market capitalization losses increasing by $446 61 billion—a 32 37% gain

• The sector overtook Consumer Discretionary as the third greatest contributor of losses on HighRisk ACEs, accounting for 13 0% of aggregate losses, up from 11 7%

• Among Large Cap companies, the sector exhibits the lowest average number of High-Risk ACEs at 1 83 events – 0 17 fewer than Real Estate, the second lowest sector

• The median SAR Risk Score® of 780 constituent companies in Financials is 6 11% The Large, Mid, and Small Cap median scores are 9 63%, 6 73%, and 4 83%, respectively

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

U.S. Securities Litigation Risk

Sector Market Capitalization Losses Amount to $4.1 Trillion

Key Takeaways

• The Information Technology sector remains the greatest contributor of market capitalization losses on High-Risk ACEs, totaling $4 1 trillion—an increase of approximately $0 6 trillion since July 2025 IT’s shares of aggregate market capitalization losses declined from 29 6% to 28 9%

• The sector has the highest market capitalization losses per High-Risk ACE at $2 39 billion Losses per High-Risk ACE increased by $0 18 billion, or 8 04% It also has the highest average frequency of High-Risk ACEs with 2 74 events

• Despite a higher frequency and greater severity of High-Risk ACEs relative to July 2025, IT is one of four sectors that exhibited a decline in securities litigation risk The decline resulted from market capitalization growth outpacing the growth in market capitalization losses

• The median SAR Risk Score® of 621 constituent companies is 28 49% The Large, Mid, and Small Cap median scores are 22 62%, 29 42%, and 35 56%, respectively

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

U.S. Securities Litigation Risk

Key Takeaways

• Securities litigation risk in the Communication Services sector held steady compared to July 2025, driven by a similar growth rate in both market capitalization and market capitalization losses on High-Risk ACEs

• Market capitalization losses increased by $187 11 billion, or 17 93%, driven primarily by continued increases in both frequency and severity of ACEs The sector’s market capitalization grew at a similar rate at approximately 18 55% during the same period

• Among Large Cap companies, the sector exhibits the highest average market capitalization losses per High-Risk ACE with $9 35 billion– $0 61 billion more than IT, the second highest sector

• The median SAR Risk Score® of 255 constituent companies in Communication Services is 22 30% The Large, Mid, and Small Cap median scores are 18 59%, 11 00%, and 31 74%, respectively

•

U.S. Securities Litigation Risk

Key Takeaways

• The Utilities sector’s securities litigation risk held steady compared to July 2025 The ratio of market capitalization losses to market capitalization increased from 8 15% to 8 25%

• Market capitalization losses increased from $129 54 billion to $138 34 billion, representing a 6 79% rise This uptick was primarily driven by a higher frequency of High-Risk ACEs, which climbed 8 93% from 1 89 to 2 06 events

• The severity of High-Risk ACEs declined relative to July 2025 Market capitalization losses per HighRisk ACEs decreased by 1 96%, only one of two sectors which recorded a decrease in severity

• The median SAR Risk Score® of 89 constituent companies in Utilities is 6 88% The Large, Mid, and Small Cap median scores are 6 54%, 6 16%, 11 86%, respectively

U.S. Securities Litigation Risk

Key Takeaways

• The Real Estate sector ranked first in the securities litigation risk footprint (see Appendix II), with all five contributing factors increasing relative to July 2025 Most notably, market capitalization losses surged by 97 89%, or $22 90 billion, alongside increases in the frequency of all three ACE types, particularly Type II and High-Risk

• Despite recording the largest percentage increase in market capitalization losses among all sectors, Real Estate continues to have the lowest losses and losses per High-Risk ACE among all sectors with $46 30 billion and $0 36 billion, respectively

• The sector also recorded the greatest gain in market capitalization among all sectors, rising 100 83% relative to July 2025 The gain was driven by a 33 3% increase in Real Estate companies

• The median SAR Risk Score® of 64 constituent companies in Real Estate is 11 26% The Large, Mid, and Small Cap median scores are 8 77%, 10 02%, and 12 75%, 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 December 31, 2025, 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

Other contributors:

Rolando Hernandez Senior Analyst rolando@sarlit com

Nessim Mezrahi Co-Founder and CEO

202 891 3650 nessim@sarlit com

Vice President

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 4,667 companies The last column shows the change in median SAR Risk Score® between July 2025 and January 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

UTILITIES

REAL ESTATE

Appendix II: U.S. Securities Litigation Risk Footprint

SAR evaluates trends in securities litigation risk 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 purpose of this report, SAR calculates the area enclosed by the five plotted points at two points in time, corresponding to evaluation periods ending on June 30, 2025 (July 2025), and December 31, 2025 (January 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 July 2025.

According to this methodology, Real Estate, Materials and Industrials exhibited the greatest changes in their footprints across the aforementioned 5-factors The relevant metrics for July 2025 and January 2026, expressed as percentages of their respective global quantum to enable cross-sector comparisons, are presented in the figures below

Real Estate. Real Estate exhibited the greatest change in securities litigation risk footprint among all sectors As of July 2025, losses associated with High-Risk ACEs accounted for approximately 0 20% of the global quantum, rising to 0 33% by January 2026 As illustrated in Figure 1e, all five factors increased within the Real Estate sector The most significant shift was observed in Type II ACEs, which rose by 0 66 percentage points High-Risk and Market Capitalization factors followed, both increasing by 0 40 and 0 19 percentage points, respectively Losses associated with High-Risk ACEs accounted for approximately 0 20% of the global quantum in July 2025, rising to 0 33% by January 2026 Despite its small share of total losses, Real Estate recorded the largest percentage increase in market capitalization among all sectors

Type I Jul-25 Jan-26

Market Cap Losses

Market Cap

Industrials Figure 1g illustrates changes in the securities litigation risk footprint for the Industrials sector Since July 2025, the sector’s share across all five factors has declined relative to their global totals Notably, the share of market capitalization losses fell by 0 87 percentage points to 9 50%, even as losses associated with High-Risk ACEs increased by $118 16 within the sector The frequency of ACEs also declined, with Type II experiencing the steepest decline, followed by Type I and High-Risk The sector’s share of total U S equity market capitalization decreased by 0 70 percentage points, reaching approximately 8 78%

Materials. Figure 1f illustrates the changes observed in the Materials sector, which recorded the second largest shift in securities litigation risk footprint Similar to Real Estate, the data reveals a broad-based increase in the sector’s contribution across all relevant factors, with a pronounced increase in Type I ACEs As of the evaluation period ending December 31, 2025, High-Risk ACEs in Materials accounted for approximately 5 02% of total High-Risk events across all sectors, up from 4 74% The sector’s share of total U S equity market capitalization rose by 0 20 percentage points, reaching approximately 3 18% Materials recorded the second highest gain in market capitalization, up by 22 95%, among all sectors relative to July 2025