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4720 Montgomery Ln., Suite 410 Bethesda, MD 20814 www.sarlit.com SAR | Securities Analytics Research U.S. Securities Litigation Risk Report July 31, 2026 1H 2026 Copyright 2026 SAR, LLC. All Rights Reserved. SAR | U.S. Securities Litigation Risk Report — 1H 2026 Page 2 of 25 | Securities Analytics Research 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 Page 3 of 25 | Securities Analytics Research 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 Page 4 of 25 | Securities Analytics Research U.S. Securities Litigation Risk Report – 1H 2026 The analytical tabulations presented herein provide dedicated risk and investment professionals with transparent, data-driven insights into the frequency and severity of Adverse Corporate Events� These insights help identify corporate disclosure trends that increase the likelihood of private securities-fraud litigation or enforcement actions brought by the Securities and Exchange Commission against directors and officers of companies listed on the NYSE or NASDAQ� Our analysis is based on close-to-close stock price performance, adjusted for general market and sector-specific factors, to isolate the impact of company-specific information� SAR provides unique, verifiably independent, factual analytics that reveal how equity investors respond to material disclosures� Our semi-annual publication of this data equips risk and investment professionals with actionable insights of securities litigation risk of U�S�-listed companies, empowering practitioners with data driven advantages based on the uniform application of event study analysis� Adverse Corporate Events (“ ACEs ”). SAR categorizes ACEs that have materialized during a two-year period prior to June 30, 2026 into three mutually exclusive categories� This classification is based on a single-firm event study methodology, which tests the stock price impact of each corporate disclosure for a given issuer� All ACEs identified by SAR exhibit a close-to-close stock price decline that is statistically significant at the 95% confidence standard� The analysis controls for broader market effects using the S&P 500 Total Return Index and adjusts for sector-specific influences using the target company’s Global Industry Classification Standard (“GICS®”) index� TYPE I ACE : • Stock price declined by a statistically significant amount at the 95% confidence level over the close-to-close event window, driven by company-specific news� • Company issues a public statement via a press release, or a representative discloses information at a press event or earnings call� TYPE II ACE : • Stock price declined by a statistically significant amount at the 95% confidence level over the close-to-close event window, driven by company-specific news� • Company made filings with the Securities and Exchange Commission (“SEC”), and no other relevant company news was identified� HIGH-RISK ACE : • Stock price declined by a statistically significant amount at the 95% confidence level over the close-to-close event window, driven by company-specific news� • Company issues a public statement via a press release, or a representative discloses information at a press event or earnings call� • Company made filings with the SEC� U.S. Securities Litigation Risk. SAR quantifies t he p otential s ecurities l itigation r isk o f a n i ssuer a ccording t o t he f requency a nd 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 o r r egulatory a gencies i n s ecurities-related c laims o r a ctions a gainst t he issuer or individual defendants. SAR Risk Score®. The SAR Risk Score ® is a proprietary score assigned to every public company listed on the NYSE or NASDAQ according to the frequency and severity of ACEs during a two-year period. The SAR Risk Score ® is equal to the market capitalization losses observed on High-Risk ACEs divided by the issuer’s market capitalization as of June 30, 2026� For example, company ABC, Inc�’s market capitalization is $500 million� SAR identified three High Risk ACEs during the preceding two years that amounted to $100 million in market capitalization losses� The SAR Risk Score ® for ABC, Inc�is 20%� SAR caps risk scores at 100% for issuers whose market capitalization losses on High-Risk ACEs exceed the company’s current market capitalization� Analytical Tabulation. The report presents tabulated summary analytics on three types of ACEs across eleven sectors, classified according to GICS®, and segmented by market capitalization� Large, Mid and Small Cap defendant companies are defined as those with market capitalizations greater than $10 billion, greater than $2 billion but less than $10 billion, and less than $2 billion, respectively, as of the end of the evaluation date� All new data and analysis presented herein are based on corporate disclosures disseminated to investors between the close of trading on June 30, 2024, and the close of trading on June 30, 2026 (hereafter, June 2026)� SAR | U.S. Securities Litigation Risk Report — 1H 2026 Page 5 of 25 | Securities Analytics Research U.S. Securities Litigation Risk The securities litigation risk of U.S. public companies is driven by the frequency and severity of ACEs that are identified through the application of the court-approved event study methodology. The identified ACEs , originating from corporate disclosures, had a significant impact on stock price performance during the relevant trading day and were publicly disseminated within the preceding two years. Frequency: Number of High-Risk ACEs Independent single-firm event study results across 4,648 U�S� public companies indicate a rise in the average number of High-Risk ACEs relative to the semi-annual period ending December 31, 2025 (hereafter, December 2025)� The average frequency increased by 1�86%, from 2�44 to 2�49 events per company� Overall, the number of High-Risk ACEs rose from 11,392 in December 2025 to 11,557 in June 2026� The three sectors with the highest average number of High-Risk ACEs are Energy, Consumer Staples, and Industrials with 2�74, 2�74 and 2�73 events per company, respectively� This marks the first time since SAR published its inaugural Risk Report in September 2024 that Energy has ranked first among all sectors in average High-Risk ACEs , underscoring the sector’s current heightened vulnerability� Relative to December 2025, the lowest sector average increased by 10�8%, from 1�83 to 2�03 High-Risk ACEs per company� In both reporting periods, Financials recorded the lowest average� At the issuer level, 29 companies recorded 10 or more High- Risk ACEs during the evaluation period, up from 26, or 11�5%, relative to December 2025� Companies with no recorded High-Risk ACEs increased from 830 to 853, a 2�8% rise compared to December 2025� Trends in High-Risk ACEs by market capitalization category indicate that such events remain most prevalent among Large Cap companies� In June 2026, Large Caps averaged 3�20 High-Risk ACEs per company, up 6�3% from December 2025� Mid Caps, however, experienced the largest increase across the three market capitalization categories, with the average rising 7�6%, from 2�56 to 2�75 events per company� In contrast, Small Caps recorded a 3�2% decline, with the average falling to 2�17 High- Risk ACEs per company� Figure 1a: Market Capitalization Losses on High-Risk ACEs Figure 1b: Market Capitalization Losses per High-Risk ACE $0.00 $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 Real Estate Energy Materials Utilities Industrials Health Care Consumer Discretionary Financials Consumer Staples Communication Services Information Technology Market Capitalization Losses per High-Risk Event ($B) Severity: Market Capitalization Losses on High-Risk ACEs The magnitude of severity amounts to the cumulative market capitalization declines observed during the close- to-close event windows on High-Risk ACEs over the preceding two years� Figure 1a ranks the eleven sectors according to the magnitude of market capitalization losses impacted by High-Risk ACEs � At approximately $5�7 trillion, the Information Technology sector recorded the largest cumulative market capitalization losses, with its share of global quantum increasing from 28�9% in December 2025 to 32�6% in June 2026� Financials and Health Care followed as the second and third largest contributors to overall losses, respectively� In the aggregate, total losses rose by $3�3 trillion, a 23�4% rise from December 2025, indicating a marked increase in the severity of High-Risk ACEs � No sector experienced a decline in market capitalization losses during the same period� Figure 1b presents market capitalization losses per High- Risk 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 � 32.6% 10.5% 14.5% 14.8% 8.8% 8.4% 5.1% 2.2% 1.9% 0.9% 0.4% $5,661.32 2,565.26 2,513.59 1,830.55 1,524.98 1,459.46 877.90 383.60 330.74 153.48 67.15 Total $17.37 Trillion Information Technology Financials Health Care Consumer Discretionary Industrials Communication Services Consumer Staples Materials Energy Utilities Real Estate SAR | U.S. Securities Litigation Risk Report — 1H 2026 Page 6 of 25 | Securities Analytics Research -2 -1 0 1 2 3 4 5 6 Percentage Points Change Energy Materials Industrials Consumer Discretionary Consumer Staples Health Care Financials Information Technology Communication Services Utilities Real Estate 0% 5% 10% 15% 20% 25% 30% Utilities Energy Materials Industrials Information Technology Real Estate Communication Services Consumer Staples Consumer Discretionary Financials Health Care Ratio of Market Capitalization Losses on High-Risk ACEs on Current Market Cap 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 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 1c: Change in Ratio of Market Cap. Losses to Sector Market Cap. Figure 1d: U.S. Securities Litigation Risk by Sector 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� SAR | U.S. Securities Litigation Risk Report — 1H 2026 Page 7 of 25 | Securities Analytics Research Market Cap Losses on High-Risk ACEs ($B) $17,368.03 19.31% Aggregate Market Cap ($B) $89,923.12 U.S. Securities Litigation Risk Aggregate Market Capitalization Losses Amount to $17.4 Trillion Key Takeaways • The aggregate quantum of securities litigation risk demonstrates that companies listed on the NYSE and NASDAQ experienced approximately $17�4 trillion in market capitalization losses as of June 30, 2026� This figure reflects the cumulative single-day, statistically significant stock price declines associated with High-Risk ACEs over the preceding two years� • The securities litigation risk increased across all eleven sectors relative to December 2025, with the largest relative increases recorded in Real Estate (45�05%), Financials (40�35%), and Information Technology (39�02%)� • Single firm event study analyses on 11,557 corporate disclosures of 4,648 U�S� public companies indicate that High-Risk ACEs continue to exhibit the highest frequency among SAR’s three ACE categories� The average frequency and aggregate severity of High-Risk ACEs increased by 1�86%, and 23�40%, respectively, relative to December 2025� • The median SAR Risk Score ® for U�S�-listed companies is 17�93%� Health Care exhibits the highest median SAR Risk Score ® at 27�55%, followed by Consumer Discretionary and Consumer Staples with 24�57% and 24�45%, respectively� Table 1: Frequency and Severity of Adverse Corporate Events by Sector Frequency [3] Severity Sector [1] U.S. Public Companies [2] Type I ACEs (Avg. No.) [4] Type II ACEs (Avg. No.) [5] High-Risk ACEs (Avg. No.) [6] Market Cap. Losses on High-Risk ACEs ($B) [7] Energy 213 1.93 1.15 2.74 $330.74 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 67.15 Total: 4,648 $17,368.03 Sector-weighted Average: 1.61 0.79 2.50 [1] The Global Industry Classification Standard (“GICS®”) is a widely used industry taxonomy developed by MSCI and S&P Dow Jones Indices� All issuers are categorized into 11 major sectors� [2] SAR analyzes the actively trading common stock and ADR issuances of every public company on the NYSE or NASDAQ with sufficient data to perform a robust event study analysis that applies court-accepted statistical standards using a uniform two-year evaluation period and assigns a company-specific SAR Risk Score ®� This column displays the number of issuers analyzed in each sector� [3] Adverse Corporate Events are statistically significant negative single-trading day stock price movements corresponding to company-specific news identified by SAR� There are three types of ACEs � Type I ACEs are company-originating news that do not include regulatory filings (i�e�, press releases, earnings calls, corporate statements)� Type II ACEs relate to corporate disclosures made via filings with the SEC� High-Risk ACEs include both company-originating news and regulatory filings made with the SEC� [4] The average number of Type I ACEs identified within the sector� [5] The average number of Type II ACEs identified within the sector� [6] The average number of High-Risk ACEs identified within the sector� [7] The cumulative quantum of market capitalization losses associated with identified High-Risk ACEs for issuers during the two-year period preceding June 30, 2026� All Sectors SAR | U.S. Securities Litigation Risk Report — 1H 2026 Page 8 of 25 | Securities Analytics Research 8.71% Energy Market Cap Losses on High-Risk ACEs ($B) $330.74 Sector Market Cap ($B) $3,798.94 Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news. Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $330.7 Billion Energy Key Takeaways • The Energy sector’s securities litigation risk increased relative to December 2025, evidenced by a 12�2% rise in alleged market capitalization losses, equivalent to roughly $35�96 billion� • The average frequency of High-Risk ACEs increased from 2�36 to 2�74 events, a 16�0% rise� This was the second largest percentage increase in High-Risk ACE frequency across all sectors, behind only Real Estate� • Energy ranked first in securities litigation risk footprint (see Appendix II ), with four out of five contributing factors increasing relative to December 2025� • The median SAR Risk Score ® of the 213 constituent companies in the Energy sector is 14�64%� The Large, Mid, and Small Cap median scores are 8�30%, 14�08% and 20�59% respectively� Table 2: Energy — Frequency and Severity of Adverse Corporate Events Figure 2a: Frequency of ACEs Figure 2b: Total ACEs by Market Cap Mean Max Q3 Median Q1 Min Market Cap Losses per High-Risk ACE $0.07B $0.24B $2.08B 0 2 4 6 8 10 12 14 16 18 T Ty yp pe e I I T Ty yp pe e I II I H Hi ig gh h- -R Ri is sk k A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s 0 100 200 300 400 500 600 S Sm ma al ll l C Ca ap p M Mi id d C Ca ap p L La ar rg ge e C Ca ap p A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s Type I Type II High-Risk Frequency Severity Market Cap Sector Category U.S. Public Companies Type I ACEs (Avg. No.) Type II ACEs (Avg. No.) High-Risk ACEs (Avg. No.) Market Cap. Losses on High-Risk ACEs ($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 Small Cap Energy 107 1.72 1.13 2.68 19.55 Total: 213 $330.74 SAR | U.S. Securities Litigation Risk Report — 1H 2026 Page 9 of 25 | Securities Analytics Research Market Cap Losses on High-Risk ACEs ($B) $383.60 13.57% Materials Sector Market Cap ($B) $2,826.71 U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $383.6 Billion Materials Key Takeaways • The securities litigation risk in the Material sector rose relative to December 2025, driven by an increase in the severity of High-Risk ACEs � • The increase in market capitalization losses reflects greater severity in High-Risk ACEs � Average losses per High-Risk ACE increased from $0�56 billion to $0�66 billion, representing a 17�85% uptick� • The average frequency of High-Risk ACEs remained stable� It rose marginally from 2�57 to 2�58 events, or 0�4%� • The median SAR Risk Score ® of 226 constituent companies in Materials is 14�50%� The Large, Mid, and Small Cap median scores are 11�24%, 19�42%, and 22�77%, respectively� Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news. Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings Table 3: Materials — Frequency and Severity of Adverse Corporate Events Figure 3a: Frequency of ACEs Figure 3b: Total ACEs by Market Cap Mean Max Q3 Median Q1 Min Market Cap Losses per High-Risk ACE $0.10B $0.38B $2.05B 0 2 4 6 8 10 12 14 16 T Ty yp pe e I I T Ty yp pe e I II I H Hi ig gh h- -R Ri is sk k A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s 0 50 100 150 200 250 300 350 400 450 500 S Sm ma al ll l C Ca ap p M Mi id d C Ca ap p L La ar rg ge e C Ca ap p A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s Type I Type II High-Risk Frequency Severity Market Cap Sector Category U.S. Public Companies Type I ACEs (Avg. No.) Type II ACEs (Avg. No.) High-Risk ACEs (Avg. No.) Market Cap. Losses on High-Risk ACEs ($B) Large Cap Materials 54 2.70 0.61 2.52 $279.43 Mid Cap Materials 71 1.82 0.72 2.99 80.57 Small Cap Materials 101 1.44 1.06 2.32 23.60 Total: 226 $383.60 SAR | U.S. Securities Litigation Risk Report — 1H 2026 Page 10 of 25 | Securities Analytics Research Market Cap Losses on High-Risk ACEs ($B) $1,524.98 18.18% Industrials Sector Market Cap ($B) $8,389.61 U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $1.5 Trillion. Industrials Key Takeaways • Market capitalization losses in the Industrials sector increased from $1�3 trillion to $1�5 trillion, representing a 14�11% increase relative to December 2025� This growth was driven by increases in the frequency and severity of High-Risk ACEs � • The growth in market capitalization outpaced the growth in alleged losses� The sector’s market capitalization increased from $7�1 trillion to $8�4 trillion, or 17�74%, during the same period� • The ratio of market capitalization losses to market capitalization declined from 18�75% to 18�18%� Industrials was one of only two sectors to record a decline in this ratio, alongside Energy� • The median SAR Risk Score ® of 681 constituent companies in Industrials is 21�08%� The Large, Mid, and Small Cap median scores are 15�69%, 20�96%, and 28�98%, respectively� Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news. Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings Table 4: Industrials — Frequency and Severity of Adverse Corporate Events Figure 4a: Frequency of ACEs Figure 4b: Total ACEs by Market Cap Mean Max Q3 Median Q1 Min Market Cap Losses per High-Risk ACE $0.08B $0.44B $2.60B 0 3 6 9 12 15 18 21 T Ty yp pe e I I T Ty yp pe e I II I H Hi ig gh h- -R Ri is sk k A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s 0 200 400 600 800 1000 1200 1400 1600 1800 S Sm ma al ll l C Ca ap p M Mi id d C Ca ap p L La ar rg ge e C Ca ap p A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s Type I Type II High-Risk Frequency Severity Market Cap Sector Category U.S. Public Companies Type I ACEs (Avg. No.) Type II ACEs (Avg. No.) High-Risk ACEs (Avg. No.) Market Cap. Losses on High-Risk ACEs ($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 Small Cap Industrials 367 1.31 0.81 2.43 70.76 Total: 681 $1,524.98 SAR | U.S. Securities Litigation Risk Report — 1H 2026 Page 11 of 25 | Securities Analytics Research Market Cap Losses on High-Risk ACEs ($B) $1,830.55 20.58% Consumer Discretionary Sector Market Cap ($B) $8,893.61 U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $1.8 Trillion Consumer Discretionary Key Takeaways • The Consumer Discretionary sector’s securities litigation risk held steady compared to December 2025� The ratio of market capitalization losses to market capitalization increased from 19�90% to 20�58%� • Market capitalization losses increased by $7�1 billion, or 0�39%� Losses per High-Risk ACE rose from $1�24 billion to $1�34 billion, an 8�41% uptick� Market capitalization decreased 2�94%� • The sector registered the largest relative decline in the frequency of High-Risk ACEs , falling from 2�67 to 2�59 events, or 3�0%� • The median SAR Risk Score® of 527 constituent companies in Consumer Discretionary is 24�57%� The Large, Mid, and Small Cap median scores are 16�32%, 26�67%, and 25�16%, respectively� Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news. Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings Table 5: Consumer Discretionary — Frequency and Severity of Adverse Corporate Events Figure 5a: Frequency of ACEs Figure 5b: Total ACEs by Market Cap Mean Max Q3 Median Q1 Min Market Cap Losses per High-Risk ACE $0.07B $0.52B $6.97B 0 200 400 600 800 1000 1200 1400 S Sm ma al ll l C Ca ap p M Mi id d C Ca ap p L La ar rg ge e C Ca ap p A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s Type I Type II High-Risk 0 2 4 6 8 10 12 14 T Ty yp pe e I I T Ty yp pe e I II I H Hi ig gh h- -R Ri is sk k A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s Frequency Severity Market Cap Sector Category U.S. Public Companies Type I ACEs (Avg. No.) Type II ACEs (Avg. No.) High-Risk ACEs (Avg. No.) Market Cap. Losses on High-Risk ACEs ($B) Large Cap 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 52.23 Total: 527 $1,830.55 SAR | U.S. Securities Litigation Risk Report — 1H 2026 Page 12 of 25 | Securities Analytics Research Market Cap Losses on High-Risk ACEs ($B) $877.90 20.33% Consumer Staples Sector Market Cap ($B) $4,318.43 U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $877.9 Billion Consumer Staples Key Takeaways • Market capitalization losses in the Consumer Staples sector increased from $761�05 billion to $877�90 billion, a 15�35% increase relative to December 2025� This growth was driven by increases in the frequency and severity of High-Risk ACEs � • The average frequency of High-Risk ACEs increased by 7�1%, rising from 2�56 to 2�74 events� This sector had the second highest average frequency across all sectors, trailing only the Energy sector� Average losses per High-Risk ACE rose $0�20 billion, from $1�59 billion to $1�79 billion, or 12�53%� • The share of alleged losses attributed to High-Risk ACEs in the Consumer Staples sector has remained broadly stable over the past year and a half, averaging 5�2% of aggregate severity� • The median SAR Risk Score ® of 179 constituent companies in Consumer Staples is 24�45%� The Large, Mid, and Small Cap median scores are 20�74%, 21�26%, and 27�38%, respectively� Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news. Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings Table 6: Consumer Staples — Frequency and Severity of Adverse Corporate Events Figure 6a: Frequency of ACEs Figure 6b: Total ACEs by Market Cap Mean Max Q3 Median Q1 Min Market Cap Losses per High-Risk ACE $0.12B $0.55B $4.92B 0 50 100 150 200 250 300 350 400 450 S Sm ma al ll l C Ca ap p M Mi id d C Ca ap p L La ar rg ge e C Ca ap p A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s Type I Type II High-Risk 0 2 4 6 8 10 12 14 16 18 T Ty yp pe e I I T Ty yp pe e I II I H Hi ig gh h- -R Ri is sk k A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s Frequency Severity Market Cap Sector Category U.S. Public Companies Type I ACEs (Avg. No.) Type II ACEs (Avg. No.) High-Risk ACEs (Avg. No.) Market Cap. Losses on High-Risk ACEs ($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 $877.90 SAR | U.S. Securities Litigation Risk Report — 1H 2026 Page 13 of 25 | Securities Analytics Research Market Cap Losses on High-Risk ACEs ($B) $2,513.59 28.75% Health Care Sector Market Cap ($B) $8,743.60 Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news. Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings Figure 7a: Frequency of ACEs Figure 7b: Total ACEs by Market Cap Mean Max Q3 Median Q1 Min Market Cap Losses per High-Risk ACE $0.08B $0.50B $5.55B 0 300 600 900 1200 1500 1800 2100 2400 2700 3000 3300 S Sm ma al ll l C Ca ap p M Mi id d C Ca ap p L La ar rg ge e C Ca ap p A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s Type I Type II High-Risk Frequency Severity Market Cap Sector Category U.S. Public Companies Type I ACEs (Avg. No.) Type II ACEs (Avg. No.) High-Risk ACEs (Avg. No.) Market Cap. Losses on High-Risk ACEs ($B) Large Cap 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 2.30 132.98 Total: 985 $2,513.59 U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $2.5 Trillion Health Care Key Takeaways • The securities litigation risk increased relative to December 2025, driven by increased severity in High-Risk ACEs � • Average losses per High-Risk ACE rose from $0�87 billion to $1�04 billion, representing a 18�68% uptick� Average frequency of High-Risk ACEs fell by 2�5%� • Health Care dropped to the third largest contributor of market capitalization losses on High-Risk ACEs , accounting for 14�5% of aggregate losses, down from 15�8%� It had held the second largest position for over a year� • The median SAR Risk Score ® of 985 constituent companies in Health Care is 27�55%� The Large, Mid, and Small Cap median scores are 23�66%, 15�42%, and 32�31%, respectively� 0 3 6 9 12 15 18 21 24 27 30 T Ty yp pe e I I T Ty yp pe e I II I H Hi ig gh h- -R Ri is sk k A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s Table 7: Health Care — Frequency and Severity of Adverse Corporate Events SAR | U.S. Securities Litigation Risk Report — 1H 2026 Page 14 of 25 | Securities Analytics Research 0 250 500 750 1000 1250 1500 S Sm ma al ll l C Ca ap p M Mi id d C Ca ap p L La ar rg ge e C Ca ap p A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s Type I Type II High-Risk Market Cap Losses on High-Risk ACEs ($B) $2,565.26 20.64% Financials Sector Market Cap ($B) $12,430.93 Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news. Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings Figure 8a: Frequency of ACEs Figure 8b: Total ACEs by Market Cap Mean Max Q3 Median Q1 Min Market Cap Losses per High-Risk ACE $0.06B $0.34B $4.87B 0 3 6 9 12 15 18 21 24 27 T Ty yp pe e I I T Ty yp pe e I II I H Hi ig gh h- -R Ri is sk k A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s Frequency Severity Market Cap Sector Category U.S. Public Companies Type I ACEs (Avg. No.) Type II ACEs (Avg. No.) High-Risk ACEs (Avg. No.) Market Cap. Losses on High-Risk ACEs ($B) Large Cap Financials 135 2.18 1.61 3.63 $2,385.36 Mid Cap Financials 169 0.93 0.56 2.32 134.87 Small Cap Financials 505 0.87 0.55 1.51 45.02 Total: 809 $2,565.26 U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $2.6 Trillion Financials Key Takeaways • The sector exhibited the second largest relative and absolute increase in securities litigation risk among the eleven sectors, with market capitalization losses rising by $738�75 billion, or 40�45%, relative to December 2025� • Financials surpassed Health Care as the second largest contributor of aggregate losses associated with High-Risk ACEs , increasing its share from 13�0% to 14�8%� • Despite increasing its average number of High-Risk ACEs from 1�83 to 2�03 events, Financials exhibited the lowest average among all other sectors� • The median SAR Risk Score ® of 809 constituent companies in Financials is 6�35%� The Large, Mid, and Small Cap median scores are 10�72%, 8�45%, and 3�24%, respectively� Table 8: Financials — Frequency and Severity of Adverse Corporate Events SAR | U.S. Securities Litigation Risk Report — 1H 2026 Page 15 of 25 | Securities Analytics Research Market Cap Losses on High-Risk ACEs ($B) $5,661.32 18.37% Information Technology Sector Market Cap ($B) $30,819.02 Adverse Corporate Events are identified by estimating statistically significant, single-trading day negative stock price movements that coincide with company-specific news. Type I: Corporate Press Release/Communication Type II: Securities and Exchange Commission (SEC) Filings High-Risk: Corporate Press Release/Communication and SEC Filings Figure 9a: Frequency of ACEs Figure 9b: Total ACEs by Market Cap Mean Max Q3 Median Q1 Min 0 6 12 18 24 30 36 T Ty yp pe e I I T Ty yp pe e I II I H Hi ig gh h- -R Ri is sk k A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s Frequency Severity Market Cap Sector Category U.S. Public Companies Type I ACEs (Avg. No.) Type II ACEs (Avg. No.) High-Risk ACEs (Avg. No.) Market Cap. Losses on High-Risk ACEs ($B) Large Cap IT 148 4.07 0.59 3.43 $5,349.28 Mid Cap IT 132 1.99 0.53 3.05 240.37 Small Cap IT 341 1.77 0.86 2.23 71.67 Total: 621 $5,661.32 0 200 400 600 800 1000 1200 1400 1600 1800 S Sm ma al ll l C Ca ap p M Mi id d C Ca ap p L La ar rg ge e C Ca ap p A Ad dv ve er rs se e C Co or rp po or ra at te e E Ev ve en nt ts s Type I Type II High-Risk U.S. Securities Litigation Risk Sector Market Capitalization Losses Amount to $5.7 Trillion Information Technology 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%, si