SAR Securities Litigation Risk Report - 1H 2026

1H 2026

SAR | Securities Analytics Research

U.S. Securities Litigation Risk Report July 31, 2026

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Table of Contents Our Mission ���������������������������������������������������������������������������������������������������������������������������������3 U.S. Securities Litigation Risk Report ����������������������������������������������������������������������������������� 4 Adverse Corporate Events (“ACEs”) ������������������������������������������������������������������������������������������������ 4 U.S. Securities Litigation Risk �������������������������������������������������������������������������������������������������������������� 4 SAR Risk Score® ���������������������������������������������������������������������������������������������������������������������������������������� 4 Analytical Tabulation ������������������������������������������������������������������������������������������������������������������������������ 4 U.S. Securities Litigation Risk ��������������������������������������������������������������������������������������������������5 Frequency: Number of High-Risk ACEs ������������������������������������������������������������������������������������������ 5 Severity: Market Capitalization Losses on High-Risk ACEs ����������������������������������������������������� 5 U.S. Securities Litigation Risk Quantification ���������������������������������������������������������������������� 6 All Sectors ��������������������������������������������������������������������������������������������������������������������������������������������������� 7 Energy ����������������������������������������������������������������������������������������������������������������������������������������������������������� 8 Materials ������������������������������������������������������������������������������������������������������������������������������������������������������� 9 Industrials �������������������������������������������������������������������������������������������������������������������������������������������������� 10 Consumer Discretionary ������������������������������������������������������������������������������������������������������������������������11 Consumer Staples �����������������������������������������������������������������������������������������������������������������������������������12 Health Care ������������������������������������������������������������������������������������������������������������������������������������������������13 Financials ��������������������������������������������������������������������������������������������������������������������������������������������������� 14 Information Technology ������������������������������������������������������������������������������������������������������������������������15 Communication Services ����������������������������������������������������������������������������������������������������������������������16 Utilities ���������������������������������������������������������������������������������������������������������������������������������������������������������17 Real Estate �������������������������������������������������������������������������������������������������������������������������������������������������18 Securities Analytics Research ����������������������������������������������������������������������������������������������� 19 U.S. Securities Litigation Report Disclaimer ���������������������������������������������������������������������������������19 SAR Risk Report Event Study Application Disclosure ����������������������������������������������������������� 20 Sources ������������������������������������������������������������������������������������������������������������������������������������������������������ 20 Contact Information ����������������������������������������������������������������������������������������������������������������������������� 20 Appendix I: Median SAR Risk Score® by GICS Classification ������������������������������������������� 21 Appendix II: U.S. Securities Litigation Risk Footprint ����������������������������������������������������� 25

SAR | U.S. Securities Litigation Risk Report — 1H 2026

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Our Mission To deliver independent and high-quality public company risk management data analytics solutions to protect Directors & Officers by enhancing transparency in the securities class action arena

SAR | U.S. 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.

.

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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

Figure 1a: Market Capitalization Losses on 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.

Information Technology Communication Services Consumer Staples Financials Consumer Discretionary Health Care Industrials Utilities Materials Energy Real Estate $0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2,513.59

Consumer Discretionary

1,830.55

Industrials

1,524.98

Communication Services

1,459.46

Consumer Staples

877.90

Materials

383.60

Energy

330.74

32.6%

Utilities Real Estate

2.2 % 1.9 % 153.48 0.9 % 67.15 0.4%

10.5%

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

2,565.26

Health Care

8.8% 8.4%

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.

$5,661.32

Financials

% 5.1

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.

Information Technology

Total

$17.37 Trillion

14.5% 14.8%

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.

$3.50

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 $1 billion per High-Risk ACE. Market Capitalization Losses per High-Risk Event ($B)

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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.

Figure 1c: Change in Ratio of Market Cap. Losses to Sector Market Cap. Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Communication Services Utilities Real Estate

-2

-1

0

1 2 3 Percentage Points Change

4

5

6

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.

Figure 1d: U.S. Securities Litigation Risk by Sector

Ratio of Market Capitalization Losses on High-Risk ACEs on Current Market Cap

30%

25%

20%

15%

10%

5%

0%

Utilities

Energy

Materials

Industrials

Information Technology

Real Estate

Communication Services

Consumer Staples

Consumer Discretionary

Financials

Health Care

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.

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All Sectors U.S. Securities Litigation Risk Aggregate Market Capitalization Losses Amount to $17.4 Trillion Key Takeaways

Aggregate Market Cap ($B)

• 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.

$89,923.12

19.31%

Market Cap Losses on High-Risk ACEs ($B)

$17,368.03

Table 1: Frequency and Severity of Adverse Corporate Events by Sector Frequency [3]

Severity

Sector [1]

U.S. Public Companies [2]

Type I ACEs (Avg. No.) [4]

Type II ACEs (Avg. No.) [5]

High-Risk ACEs (Avg. No.) [6]

Market Cap. Losses on High-Risk ACEs ($B) [7]

$330.74

Energy

213

1.93

1.15

2.74

Materials

226

1.86

0.85

2.58

383.60

Industrials

681

1.60

0.68

2.73

1,524.98

Consumer Discretionary

527

1.34

0.68

2.59

1,830.55

Consumer Staples

179

1.68

0.76

2.74

877.90

Health Care

985

1.62

0.71

2.46

2,513.59

Financials

809

1.10

0.73

2.03

2,565.26

Information Technology

621

2.36

0.73

2.69

5,661.32

Communication Services

257

1.51

0.84

2.29

1,459.46

Utilities

88

1.39

0.82

2.22

153.48

Real Estate

62

1.27

0.79

2.44

Total:

4,648

Sector-weighted Average:

67.15 $17,368.03

1.61

0.79

2.50

[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 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.

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Energy U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $330.7 Billion

Sector Market Cap ($B)

$3,798.94

Key Takeaways .

8.71% Energy

Market Cap Losses on High-Risk ACEs ($B)

$330.74

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

Severity

Market Cap Sector Category

U.S. Public Companies

Type I ACEs (Avg. No.)

Type II ACEs (Avg. No.)

High-Risk ACEs (Avg. No.)

Market Cap. Losses on High-Risk ACEs ($B)

Large Cap Energy

47

2.62

1.19

2.77

$270.41

Mid Cap Energy

59

1.78

1.17

2.83

40.77

107

1.72

1.13

2.68

Small Cap Energy Total:

$330.74

Figure 2a: Frequency of ACEs

Figure 2b: Total ACEs by Market Cap

18 Mean

Min

14

Adverse Corporate Events

Q1

Adverse Corporate Events

Median

600

Type I

16

Max

Q3

19.55

213

12 10 8 6 4

Type II

High-Risk

500 400 300 200 100

2 0

0

Ty p e I

T y p e II

Hi gh - Ris k

Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news.

Sm al l Ca p

$0.07B

M id Cap

L a r ge C a p

$0.24B

$2.08B

Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings

Market Cap Losses per High-Risk ACE

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Materials U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $383.6 Billion

Sector Market Cap ($B)

$2,826.71

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.

13.57%

• 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.

Materials

• 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.

Market Cap Losses on High-Risk ACEs ($B)

$383.60

Table 3: Materials — Frequency and Severity of Adverse Corporate Events Frequency Market Cap Sector Category

U.S. Public Companies

Type I ACEs (Avg. No.)

Type II ACEs (Avg. No.)

High-Risk ACEs (Avg. No.)

Market Cap. Losses on High-Risk ACEs ($B)

Large Cap Materials

54

2.70

0.61

2.52

$279.43

Mid Cap Materials

71

1.82

0.72

2.99

80.57

101

1.44

1.06

2.32

Small Cap Materials Total:

$383.60

Figure 3b: Total ACEs by Market Cap

16

Median

Q1 Min

500

14

Type I

450 Adverse Corporate Events

Q3

Adverse Corporate Events

Mean

23.60

226

Figure 3a: Frequency of ACEs

Max

Severity

12 10 8 6 4 2

Type II

High-Risk

400 350 300 250 200 150 100 50

0 Ty p e I

T y p e II

Hi gh - Ris k

Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news.

0 Sm al l Ca p

$0.10B

M id Cap

L a r ge C a p

$0.38B

$2.05B

Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings

Market Cap Losses per High-Risk ACE

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Industrials U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $1.5 Trillion.

Sector Market Cap ($B)

$8,389.61

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.

18.18%

Industrials

• 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.

Market Cap Losses on High-Risk ACEs ($B)

$1,524.98

Table 4: Industrials — Frequency and Severity of Adverse Corporate Events Frequency

Severity

Market Cap Sector Category

U.S. Public Companies

Type I ACEs (Avg. No.)

Type II ACEs (Avg. No.)

High-Risk ACEs (Avg. No.)

Market Cap. Losses on High-Risk ACEs ($B)

Large Cap Industrials

153

2.40

0.42

3.11

$1,236.73

Mid Cap Industrials

161

1.52

0.63

3.05

217.49

367

1.31

0.81

2.43

Small Cap Industrials Total:

$1,524.98

Figure 4a: Frequency of ACEs

Figure 4b: Total ACEs by Market Cap

21

Q3

Median

Q1

1800

18

Type I

Type II

High-Risk

1600 Adverse Corporate Events

Max

Adverse Corporate Events

Mean

70.76

681

15 12 9 6 3

1400 1200 1000 800 600 400 200

Min

0 Ty p e I

T y p e II

Hi gh - Ris k

Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news.

0 Sm al l Ca p

M id Cap

L a r ge C a p

$0.08B

$0.44B

$2.60B

Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings

Market Cap Losses per High-Risk ACE

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Consumer Discretionary U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $1.8 Trillion

Sector Market Cap ($B)

$8,893.61

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%.

20.58%

Consumer Discretionary

• 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.

Market Cap Losses on High-Risk ACEs ($B)

$1,830.55

Table 5: Consumer Discretionary — Frequency and Severity of Adverse Corporate Events Frequency Market Cap Sector Category

U.S. Public Companies

Type I ACEs (Avg. No.)

Type II ACEs (Avg. No.)

High-Risk ACEs (Avg. No.)

Market Cap. Losses on High-Risk ACEs ($B)

Large Cap Cons. Discr.

81

1.91

0.65

2.75

$1,554.70

Mid Cap Cons. Discr.

142

1.38

0.56

3.06

223.62

Small Cap Cons. Discr.

304

1.16

0.74

2.33

Total:

$1,830.55

Figure 5b: Total ACEs by Market Cap 1400

14

Q1 Min

Type I

Type II

High-Risk

1200

12

Adverse Corporate Events

Median

Adverse Corporate Events

Mean

Q3

52.23

527

Figure 5a: Frequency of ACEs

Max

Severity

10 8 6 4 2 0 Ty p e I

T y p e II

Hi gh - Ris k

Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news.

1000 800 600 400 200 0 Sm al l Ca p

M id Cap

L a r ge C a p

$0.07B

$0.52B

$6.97B

Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings

Market Cap Losses per High-Risk ACE

SAR | U.S. Securities Litigation Risk Report — 1H 2026

Page 11 of 25

| Securities Analytics Research

Consumer Staples U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $877.9 Billion

Sector Market Cap ($B)

$4,318.43

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.

20.33% Consumer Staples

• 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.

Market Cap Losses on High-Risk ACEs ($B)

• 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.

$877.90

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

Severity

Market Cap Sector Category

U.S. Public Companies

Type I ACEs (Avg. No.)

Type II ACEs (Avg. No.)

High-Risk ACEs (Avg. No.)

Market Cap. Losses on High-Risk ACEs ($B)

Large Cap Consumer Staples

47

2.68

0.91

3.45

$796.92

Mid Cap Consumer Staples

31

1.68

0.23

3.23

54.59

Small Cap Consumer Staples

101

1.22

0.85

2.26

26.39

Total:

179

$877.90

Figure 6a: Frequency of ACEs

Median

Q1 Min

Adverse Corporate Events

Q3

18

450

16

400 Adverse Corporate Events

Mean Max

Figure 6b: Total ACEs by Market Cap

14 12 10 8 6 4 2

Type I

Type II

High-Risk

350 300 250 200 150 100 50

0 Ty p e I

T y p e II

Hi gh - Ris k

Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news.

0 Sm al l Ca p

$0.12B

M id Cap

$0.55B

L a r ge C a p

$4.92B

Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings

Market Cap Losses per High-Risk ACE

SAR | U.S. Securities Litigation Risk Report — 1H 2026

Page 12 of 25

| Securities Analytics Research

Health Care U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $2.5 Trillion

Sector Market Cap ($B)

$8,743.60

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

28.75%

• 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

• 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.

Market Cap Losses on High-Risk ACEs ($B)

$2,513.59

Table 7: Health Care — Frequency and Severity of Adverse Corporate Events Frequency Market Cap Sector Category

U.S. Public Companies

Type I ACEs (Avg. No.)

Type II ACEs (Avg. No.)

High-Risk ACEs (Avg. No.)

Market Cap. Losses on High-Risk ACEs ($B)

Large Cap Health Care

106

3.44

0.79

3.75

$2,208.26

Mid Cap Health Care

146

1.45

0.43

2.34

172.36

Small Cap Health Care

733

1.40

0.75

2.30

Total:

$2,513.59

Figure 7b: Total ACEs by Market Cap

30 Mean

Min

Type I

3000

24

Adverse Corporate Events

Q1

Adverse Corporate Events

Median

3300

27

Max

132.98

985

Figure 7a: Frequency of ACEs

Q3

Severity

21 18 15 12 9 6 3

Type II

High-Risk

2700 2400 2100 1800 1500 1200 900 600 300

0 Ty p e I

T y p e II

Hi gh - Ris k

Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news.

0 Sm al l Ca p

M id Cap

L a r ge C a p

$0.08B

$0.50B

$5.55B

Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings

Market Cap Losses per High-Risk ACE

SAR | U.S. Securities Litigation Risk Report — 1H 2026

Page 13 of 25

| Securities Analytics Research

Financials U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $2.6 Trillion

Sector Market Cap ($B)

$12,430.93

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.

20.64% Financials

• 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.

Market Cap Losses on High-Risk ACEs ($B)

$2,565.26

Table 8: Financials — Frequency and Severity of Adverse Corporate Events Frequency Market Cap Sector Category

U.S. Public Companies

Type I ACEs (Avg. No.)

Type II ACEs (Avg. No.)

High-Risk ACEs (Avg. No.)

Market Cap. Losses on High-Risk ACEs ($B)

Large Cap Financials

135

2.18

1.61

3.63

$2,385.36

Mid Cap Financials

169

0.93

0.56

2.32

134.87

505

0.87

0.55

1.51

Small Cap Financials Total:

$2,565.26

Figure 8b: Total ACEs by Market Cap

27 Mean

Q1 Min

21

Adverse Corporate Events

Median

1500

Type I

24 Adverse Corporate Events

Q3

45.02

809

Figure 8a: Frequency of ACEs

Max

Severity

18 15 12 9 6 3 0 Ty p e I

T y p e II

Hi gh - Ris k

Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news.

Type II

High-Risk

1250 1000 750 500 250 0 Sm al l Ca p

M id Cap

L a r ge C a p

$0.06B

$0.34B

$4.87B

Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings

Market Cap Losses per High-Risk ACE

SAR | U.S. Securities Litigation Risk Report — 1H 2026

Page 14 of 25

| Securities Analytics Research

Information Technology U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $5.7 Trillion

Sector Market Cap ($B)

$30,819.02

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%.

18.37%

Information Technology

• 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.

Market Cap Losses on High-Risk ACEs ($B)

$5,661.32

• 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 Frequency Market Cap Sector Category

U.S. Public Companies

Type I ACEs (Avg. No.)

Type II ACEs (Avg. No.)

High-Risk ACEs (Avg. No.)

Market Cap. Losses on High-Risk ACEs ($B)

Large Cap IT

148

4.07

0.59

3.43

$5,349.28

Mid Cap IT

132

1.99

0.53

3.05

240.37

341

1.77

0.86

2.23

Small Cap IT Total:

$5,661.32

30

Adverse Corporate Events

Adverse Corporate Events

Q1 Min

1800

Type I

Type II

High-Risk

1600

Max

Median

Figure 9b: Total ACEs by Market Cap

36

Mean

71.67

621

Figure 9a: Frequency of ACEs

Q3

Severity

24 18 12 6

1400 1200 1000 800 600 400 200

0 Ty p e I

T y p e II

Hi gh - Ris k

Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news.

0 Sm al l Ca p

M id Cap

L a r ge C a p

$0.09B

$0.60B

$10.55B

Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings

Market Cap Losses per High-Risk ACE

SAR | U.S. Securities Litigation Risk Report — 1H 2026

Page 15 of 25

| Securities Analytics Research

Communication Services U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $1.5 Trillion

Sector Market Cap ($B)

$7,536.19

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%.

19.37%

• 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.

Communication Services

• 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.

Market Cap Losses on High-Risk ACEs ($B)

$1,459.46

Table 10: Communication Services — Frequency and Severity of Adverse Corporate Events Frequency

Severity

Market Cap Sector Category

U.S. Public Companies

Type I ACEs (Avg. No.)

Type II ACEs (Avg. No.)

High-Risk ACEs (Avg. No.)

Market Cap. Losses on High-Risk ACEs ($B)

Large Cap Comm. Serv.

41

3.41

1.66

3.20

$1,342.70

Mid Cap Comm. Serv.

38

1.03

0.61

2.18

83.86

Small Cap Comm. Serv.

178

1.18

0.70

2.11

Total:

$1,459.46

Figure 10a: Frequency of ACEs

Figure 10b: Total ACEs by Market Cap 800

24 Mean

Median

Q1 Min

Adverse Corporate Events

Q3

Adverse Corporate Events

21

Max

32.90

257

18 15 12 9 6

Type I

Type II

High-Risk

700 600 500 400 300 200 100

3

0

0 Ty p e I

T y p e II

Hi gh - Ris k

Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news.

Sm al l Ca p

M id Cap

L a r ge C a p

$0.09B

$1.01B

$10.25B

Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings

Market Cap Losses per High-Risk ACE

SAR | U.S. Securities Litigation Risk Report — 1H 2026

Page 16 of 25

| Securities Analytics Research

Utilities U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $153.5 Billion

Sector Market Cap ($B)

$1,804.01

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.

8.51%

• 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.

Utilities

• 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.

Market Cap Losses on High-Risk ACEs ($B)

$153.48

Table 11: Utilities — Frequency and Severity of Adverse Corporate Events Frequency Market Cap Sector Category

U.S. Public Companies

Type I ACEs (Avg. No.)

Type II ACEs (Avg. No.)

High-Risk ACEs (Avg. No.)

Market Cap. Losses on High-Risk ACEs ($B)

Large Cap Utilities

40

1.83

1.05

2.03

$134.86

Mid Cap Utilities

31

1.19

0.74

2.39

16.84

17

0.71

0.41

2.35

Small Cap Utilities Total:

$153.48

Median

Q1 Min

Figure 11b: Total ACEs by Market Cap

8

200

7

175 Adverse Corporate Events

Q3

Adverse Corporate Events

Mean

1.78

88

Figure 11a: Frequency of ACEs

Max

Severity

6 5 4 3 2 1

Type I

Type II

High-Risk

150 125 100 75 50 25

0 Ty p e I

T y p e II

Hi gh - Ris k

Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news.

0 Sm al l Ca p

M id Cap

L a r ge C a p

$0.04B

$0.23B

$1.66B

Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings

Market Cap Losses per High-Risk ACE

SAR | U.S. Securities Litigation Risk Report — 1H 2026

Page 17 of 25

| Securities Analytics Research

Real Estate U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $67.2 Billion

Sector Market Cap ($B)

$362.09

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.

18.55%

Real Estate

• 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.

Market Cap Losses on High-Risk ACEs ($B)

• 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.

$67.15

Table 12: Real Estate— Frequency and Severity of Adverse Corporate Events Frequency Market Cap Sector Category

U.S. Public Companies

Type I ACEs (Avg. No.)

Type II ACEs (Avg. No.)

High-Risk ACEs (Avg. No.)

Market Cap. Losses on High-Risk ACEs ($B)

Large Cap Real Estate

9

1.56

1.33

2.78

$35.24

Mid Cap Real Estate

16

1.25

0.63

2.81

27.26

Small Cap Real Estate

37

1.22

0.73

2.19

Total:

$67.15

Max

7

Median

Q1 Min

Figure 12b: Total ACEs by Market Cap 175 Type I

Type II

High-Risk

150 Adverse Corporate Events

8

Adverse Corporate Events

Mean

4.65

62

Figure 12a: Frequency of ACEs

Q3

Severity

6 5 4 3 2

125 100 75 50 25

1

0

0 Ty p e I

T y p e II

Hi gh - Ris k

Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news.

Sm al l Ca p

$0.06B

M id Cap

L a r ge C a p

$0.61B

$1.41B

Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings

Market Cap Losses per High-Risk ACE

SAR | U.S. Securities Litigation Risk Report — 1H 2026

Page 18 of 25

| Securities Analytics Research

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.

SAR | U.S. Securities Litigation Risk Report — 1H 2026

Page 19 of 25

| Securities Analytics Research

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

Enquire.

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

SAR | U.S. Securities Litigation Risk Report — 1H 2026

Stephen Sigrist, MFE Senior Vice President T: 202.891.3652 E: Stephen@sarlit.com

Page 20 of 25

Rolando Hernandez, MSc Senior Analyst T: 202.436.9994 E: Rolando@sarlit.com

| Securities Analytics Research

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 Industry Group(s)

Energy

SAR Risk Score® (Median)

Constituent Industries

SAR Risk Score® (Median)

Energy Equipment and Services

20.02%

14.64% Oil, Gas and Consumable Fuels

12.67%

SAR Risk Score® (Median)

Score Delta

Oil and Gas Drilling

20.99%

+10.18

Oil and Gas Equipment and Services

19.97%

+0.08

Integrated Oil and Gas

9.08%

+2.30

Oil and Gas Exploration and Production

15.20%

+0.93

Oil and Gas Refining and Marketing

30.56%

+4.94

Oil and Gas Storage and Transportation

5.68%

-1.44

Coal and Consumable Fuels

21.70%

+7.64

SAR Risk Score® (Median)

Score Delta

Commodity Chemicals

40.15%

-17.92

Diversified Chemicals

41.37%

+9.09

Fertilizers and Agricultural Chemicals

38.03%

+1.90

Industrial Gases

7.83%

-9.54

Specialty Chemicals

21.42%

-2.75

Construction Materials

11.66%

+5.41

Metal, Glass and Plastic Containers

15.29%

-16.63

Paper and Plastic Packaging Products and Materials

30.88%

+4.26

Aluminum

15.16%

-2.12

Diversified Metals and Mining

6.45%

-2.25

Copper

19.45%

+7.73

Gold

6.49%

+0.94

Precious Metals and Minerals

2.85%

-11.51

Silver

12.13%

-3.21

Steel

13.60%

+1.06

Forest Products

14.04%

-1.50

Paper Products

83.71%

+22.93

SAR Risk Score® (Median)

Score Delta

-2.15

Sub Industries

MATERIALS Industry Group(s)

SAR Risk Score® (Median)

Constituent Industries

Chemicals

Materials

SAR Risk Score® (Median)

29.32%

Construction Materials

11.66%

Containers and Packaging

21.94%

14.5%

Metals and Mining

Paper and Forest Products

8.91%

19.37%

Sub Industries

INDUSTRIALS Industry Group(s)

Capital Goods

SAR Risk Score® (Median)

20.11%

Constituent Industries

SAR Risk Score® (Median)

Aerospace and Defense

16.74%

Aerospace and Defense

16.74%

Building Products

29.18%

Building Products

29.18%

-7.77

Construction and Engineering

10.66%

Construction and Engineering

10.66%

-0.36

Electrical Equipment

20.24%

Electrical Components and Equipment

19.46%

-1.50

Heavy Electrical Equipment

21.57%

-2.03

Industrial Conglomerates

17.09%

Industrial Conglomerates

17.09%

+8.49

Construction Machinery and Heavy Transportation Equipment

17.99%

-4.92

Agricultural and Farm Machinery

17.51%

-6.87

Industrial Machinery and Supplies and Components

20.14%

+0.66

Trading Companies and Distributors

22.21%

-1.65

Machinery

Trading Companies and Distributors

SAR | U.S. Securities Litigation Risk Report — 1H 2026

19.46%

22.21%

Sub Industries

Page 21 of 25

| Securities Analytics Research

INDUSTRIALS

Commercial Services and Supplies Commercial and Professional Services

31.93%

Professional Services

Transportation

22.49%

13.82%

40.40%

Commercial Printing

16.10%

+0.58

Environmental and Facilities Services

28.47%

+4.55

Office Services and Supplies

23.08%

+0.03

Diversified Support Services

11.79%

+1.85

Security and Alarm Services

21.47%

+7.63

Human Resource and Employment Services

41.21%

+17.86

Research and Consulting Services

38.94%

+12.60

Data Processing and Outsourced Services

55.02%

+39.34 +4.25

Air Freight and Logistics

20.05%

Air Freight and Logistics

20.05%

Passenger Airlines

21.38%

Passenger Airlines

21.38%

-0.26

Marine Transportation

6.01%

Marine Transportation

6.01%

+4.02

Rail Transportation

12.04%

-1.90

Ground Transportation

15.64%

Cargo Ground Transportation

15.30%

-7.34

Passenger Ground Transportation

34.32%

+7.61

Airport Services

4.82%

+1.98

Marine Ports and Services

32.81%

+17.47

SAR Risk Score® (Median)

Score Delta

Transportation Infrastructure

6.425%

CONSUMER DISCRETIONARY Industry Group(s)

Automobiles and Components

SAR Risk Score® (Median)

Constituent Industries

SAR Risk Score® (Median)

Automobile Components

22.83%

Automobiles

20.68%

21.70%

Household Durables Consumer Durables and Apparel

31.02% Leisure Products

Textiles, Apparel and Luxury Goods

Hotels, Restaurants and Leisure Consumer Services

Consumer Discretionary Distribution and Retail

22.25%

29.16% 47.12%

20.80%

18.85%

Sub Industries Automotive Parts and Equipment

21.69%

+5.52

Tires and Rubber

97.96%

+22.38

Automobile Manufacturers

20.68%

-25.47

Motorcycle Manufacturers

19.96%

-8.30

Consumer Electronics

30.12%

-5.24

Home Furnishings

24.49%

-3.39

Homebuilding

18.11%

-8.41

Household Appliances

37.52%

-20.00

Housewares and Specialties

3.33%

-13.31

Leisure Products

29.16%

-7.09

Apparel, Accessories and Luxury Goods

36.73%

+3.87

Footwear

50.51%

+0.47

Textiles

33.62%

+2.99

Casinos and Gaming

25.62%

+7.81

Hotels, Resorts and Cruise Lines

18.62%

+3.25

Leisure Facilities

44.89%

+12.71

Restaurants

19.32%

-7.05

Education Services

8.88%

+4.36

Specialized Consumer Services

Diversified Consumer Services

9.98%

17.11%

-12.41

Distributors

0.00%

Distributors

0.00%

-15.54

Broadline Retail

23.29%

Broadline Retail

23.29%

-7.53

Apparel Retail

33.15%

+7.90

Computer and Electronics Retail

30.39%

-12.14

Home Improvement Retail

8.89%

-2.42

Other Specialty Retail

36.55%

+5.52

Automotive Retail

31.57%

+1.50

Homefurnishing Retail

40.90%

+6.50

30.15% Specialty Retail

SAR | U.S. Securities Litigation Risk Report — 1H 2026

32.55%

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| Securities Analytics Research

CONSUMER STAPLES Industry Group(s)

Consumer Staples Distribution and Retail

SAR Risk Score® (Median)

27.53%

Constituent Industries

Consumer Staples Distribution and Retail

Beverages Food, Beverage and Tobacco

Household and Personal Products

SAR Risk Score® (Median)

27.53%

15.36%

20.74%

27.99%

Food Products

21.33%

Sub Industries

SAR Risk Score® (Median)

Score Delta

Drug Retail

100.00%

0.00

Food Distributors

21.13%

+0.25

Food Retail

24.63%

+8.57

Consumer Staples Merchandise Retail

29.10%

-4.89

Brewers

15.15%

-8.56

Distillers and Vintners

49.51%

+17.01

Soft Drinks and Non-alcoholic Beverages

13.94%

+0.30

Agricultural Products and Services

10.96%

-8.01

Packaged Foods and Meats

25.91%

+4.11 +2.43

Tobacco

15.78%

Tobacco

15.78%

Household Products

16.99%

Household Products

16.99%

-2.92

Personal Care Products

33.92%

Personal Care Products

33.92%

-11.82

SAR Risk Score® (Median)

Score Delta

Health Care Equipment

42.80%

+12.91

Health Care Supplies

30.64%

-18.23

Health Care Distributors

38.73%

+19.34

Health Care Services

18.20%

-4.59

Health Care Facilities

25.30%

+8.39

HEALTH CARE Industry Group(s)

Health Care Equipment and Services

Pharmaceuticals, Biotechnology and Life Sciences

SAR Risk Score® (Median)

35.36%

23.42%

Constituent Industries

SAR Risk Score® (Median)

Health Care Equipment and Supplies

38.69%

Sub Industries

Health Care Providers and Services

27.17%

Managed Health Care

46.05%

-19.28

Health Care Technology

36.85%

Health Care Technology

36.85%

-18.56

Biotechnology

20.64%

Biotechnology

20.64%

-2.05

Pharmaceuticals

25.34%

Pharmaceuticals

25.34%

+1.12

Life Sciences Tools and Services

38.17%

Life Sciences Tools and Services

38.17%

+0.84

SAR Risk Score® (Median)

Score Delta

Diversified Banks

6.37%

+0.31

Regional Banks

4.17%

+0.02

Diversified Financial Services

13.36%

-1.31

Multi-Sector Holdings

8.18%

+1.42

Specialized Finance

61.70%

+46.98

Commercial and Residential Mortgage Finance

20.13%

+9.04

Transaction and Payment Processing Services

34.65%

-13.94

Consumer Finance

18.17%

+1.62

Asset Management and Custody Banks

0.00%

-0.45

Investment Banking and Brokerage

8.73%

+1.52

Diversified Capital Markets

20.81%

+0.73

Financial Exchanges and Data

17.27%

-16.87

Mortgage REITs

10.41%

-4.97

Insurance Brokers

19.56%

-2.87

Life and Health Insurance

12.86%

+2.21

Multi-line Insurance

1.65%

-6.49

Property and Casualty Insurance

12.85%

+3.50

Reinsurance

18.04%

-1.97

FINANCIALS Industry Group(s)

SAR Risk Score® (Median)

Constituent Industries

SAR Risk Score® (Median)

Banks

4.28%

Banks

4.28%

Financial Services

Financial Services

7.47%

Consumer Finance

Capital Markets

Mortgage Real Estate Investment Trusts (REITs)

Insurance

12.86%

SAR | U.S. Securities Litigation Risk Report — 1H 2026

Insurance

26.67%

18.17%

0.28%

10.41%

12.86%

Sub Industries

Page 23 of 25

| Securities Analytics Research

INFORMATION TECHNOLOGY Industry Group(s)

Software and Services

Technology Hardware and Equipment

Semiconductors and Semiconductor Equipment

SAR Risk Score® (Median)

Constituent Industries

SAR Risk Score® (Median)

IT Services

24.51%

Software

37.86%

Communications Equipment

SAR Risk Score® (Median)

Score Delta

IT Consulting and Other Services

25.60%

+3.87

Internet Services and Infrastructure

24.51%

-13.27

Application Software

38.34%

+5.19

Systems Software

31.50%

-9.89

19.86%

Communications Equipment

19.86%

-3.61

Technology Hardware, Storage and Peripherals

16.08%

Technology Hardware, Storage and Peripherals

16.08%

-21.78

Electronic Equipment and Instruments Electronic Equipment, Instruments and Components

20.03%

Technology Distributors

26.21% 14.70% 19.28% 20.43%

+5.40 +2.12 -8.80 -5.02

Semiconductor Materials and Equipment

18.97%

-10.51

Semiconductors

15.82%

-13.38

SAR Risk Score® (Median)

Score Delta

Alternative Carriers

20.57%

-13.44

Integrated Telecommunication Services

13.63%

-2.18

Wireless Telecommunication Services

8.42%

-3.51

Advertising

Publishing

25.77% 12.09% 24.70% 17.64%

+4.58 -8.17 -0.99 -15.41

Movies and Entertainment

17.18%

+1.84

Interactive Home Entertainment

19.72%

+0.87

Interactive Media and Services

35.27%

-5.94

SAR Risk Score® (Median)

Score Delta

34.37%

19.39%

18.05%

Sub Industries

Semiconductors and Semiconductor Equipment

18.05%

Electronic Components Electronic Manufacturing Services

COMMUNICATION SERVICES Industry Group(s)

Telecommunication Services

SAR Risk Score® (Median)

15.89%

Constituent Industries

SAR Risk Score® (Median)

Diversified Telecommunication Services

19.00%

Wireless Telecommunication Services

8.42%

Media Media and Entertainment

21.54%

24.60% Entertainment

17.39%

Interactive Media and Services

35.27%

Sub Industries

Broadcasting Cable and Satellite

UTILITIES Industry Group(s)

Utilities

SAR Risk Score® (Median)

6.18%

Constituent Industries

SAR Risk Score® (Median)

Electric Utilities

5.01%

Electric Utilities

5.01%

-1.80

Gas Utilities

9.68%

Gas Utilities

9.68%

+0.57

Sub Industries

Multi-Utilities

3.79%

Multi-Utilities

3.79%

0.00

Water Utilities

9.10%

Water Utilities

9.10%

+3.18

Independent Power and Renewable Electricity Producers

9.63%

Independent Power Producers and Energy Traders

27.20%

+7.41

Renewable Electricity

9.62%

+0.40

SAR Risk Score® (Median)

Score Delta

REAL ESTATE Industry Group(s)

Equity Real Estate Investment Trusts (REITs)

Real Estate Management and Development

SAR Risk Score® (Median)

Constituent Industries

SAR Risk Score® (Median)

Diversified REITs

14.56%

Diversified REITs

14.56%

NA

Industrial REITs

63.80%

Industrial REITs

63.80%

-5.34

Office REITs

18.78%

Office REITs

18.78%

+18.78

Health Care REITs

42.79%

Health Care REITs

42.79%

-10.70

Residential REITs

9.77%

Multi-Family Residential REITs

9.70%

+1.25

Single-Family Residential REITs

9.84%

-6.96 +1.15

15.28%

16.00%

Sub Industries

Retail REITs

3.14%

Retail REITs

3.14%

Specialized REITs

16.42%

Other Specialized REITs

17.91%

+1.44

Telecom Tower REITs

15.28%

+10.94

Data Center REITs

33.91%

+29.11

Diversified Real Estate Activities

16.00% 0.00% 19.76% 18.51%

+2.06 -9.18 +11.66 +4.88

Real Estate Management and Development

SAR | U.S. Securities Litigation Risk Report — 1H 2026

16.00%

Real Estate Operating Companies Real Estate Development Real Estate Services

Page 24 of 25

| Securities Analytics Research

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.

High-Risk

Figure A2: Consumer Discretionary

14% 12% 10% 8% 6%

Type I

Type II

4% 2% 0%

Market Cap Losses

Dec-25

Jun-26

Figure A1: Energy

6.0% 5.0% 4.0%

Type I

3.0%

Type II

2.0% 1.0% 0.0%

Market Cap Losses

Dec-25

Jun-26

Market Cap

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.

Market Cap High-Risk

Figure A3: 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%.

SAR | U.S. Securities Litigation Risk Report — 1H 2026

High-Risk

7.0%

Page 25 of 25

Health Care

Type I

27% 24% 21% 18% 15% 12% 9% 6% 3% 0%

Type II

Market Cap Losses

Market Cap Dec-25

Jun-26 | Securities Analytics Research