U.S. Securities Litigation Risk Increased by $2.3 Trillion in Second Half of 2025

BETHESDA, Md., Jan. 30, 2026 /PRNewswire/ -- Securities Analytics Research (SAR), a data analytics company specialized in the securities litigation risk of U.S. public companies, today published the U.S. Securities Litigation Risk Report – January 2026.

According to the semi-annual report, single-firm event study analyses on 11,392 corporate disclosures from a population of over 4,660 U.S. public companies, indicate that NYSE and NASDAQ issuers exhibited approximately $14.1 trillion in market capitalization losses during the two-year period ending December 31, 2025. These losses reflect the cumulative, statistically significant single-day stock price declines associated with High-Risk Adverse Corporate Events ("ACEs") identified and analyzed through the proactive and uniform application of the court-approved event study methodology.

SAR's verifiably independent event study analyses on the universe of corporate disclosures involving both public statements and filings made with the Securities and Exchange Commission ("SEC") over the same trading session indicate that both average frequency and aggregate severity of High-Risk ACEs increased by 4.33% and 19.7%, respectively, relative to the two-year period ending June 30, 2025.

"Our verifiably independent data confirm that directors and officers of U.S. public companies are facing a demonstrable increase of $2.3 trillion in securities litigation risk based on the frequency and severity of high-risk adverse corporate events," said Nessim Mezrahi, Co-Founder and CEO of SAR.

According to the report, all eleven Global Industry Classification Standard (GICS®) sectors exhibited an increase in the frequency of High-Risk ACEs. In the aggregate, U.S. public companies face an increase of $2,316.28 billion in the two-year market capitalization loss accumulation relative to June 30, 2025. On average, market capitalization losses per High-Risk ACE have increased by $129.4 million, or 11.7%, over the preceding six months.

As of December 31, 2025, Financials, Health Care, and Information Technology sectors topped the field with an increase of 137, 130, and 129 High-Risk ACEs during the preceding six months. Information Technology, Financials, and Health Care exhibited the greatest increase in market capitalization losses linked to High-Risk ACEs with $588.42, $446.61, and $402.23 billion, respectively. 

Information Technology demonstrates the highest median SAR Risk Score® at 28.49%, followed by Health Care at 26.73%, and Consumer Discretionary at 25.15%. Information Technology continues to face the greatest market capitalization losses per High-Risk ACE, amounting to $2.39 billion, followed by Communication Services and Consumer Staples with $2.11 and $1.59 billion, respectively.

This independent, semi-annual U.S. equity research report presents an appendix with the median SAR Risk Score® across all GICS groups, industries, and sub-industries. The SAR Platform® equips users with near real-time probability and quantification of securities litigation risk with transparency at the corporate disclosure level for any public company listed on the NYSE or NASDAQ.

About Securities Analytics Research (SAR): SAR LLC is a specialized data analytics company focused on securities litigation risk management analytics of U.S. public companies, founded in 2018 and based in Bethesda, MD. Through the SAR Platform®, users license verifiably independent and high-quality data analytics based on near real-time stock price performance in response to public companies' corporate disclosures. SAR is the developer and publisher of the SAR Risk Score®, which is assigned to issuers that trade on the NYSE or NASDAQ at the close of trading. SAR applies the court-approved event study methodology to test stock price reaction on the universe of corporate disclosures to accurately estimate the probability and magnitude of securities litigation risk impacting directors and officers. SAR provides verifiably independent securities class action settlement valuations as evidentiary support in mediated negotiations that resolve securities claims that allege violations of the federal securities laws under the Exchange Act of 1934 and Securities Act of 1933. The company is committed to the verifiable independence and accuracy of the licensed data and has been publishing quarterly statistical back-testing results since 2018. SAR does not rely on artificial intelligence (AI) or machine learning (ML) and operates in accordance with documented standard operating procedures with assigned process owners to ensure independent, human accountability. The company does not engage in economic consulting, nor places capital at risk on behalf of investors or insurers. SAR does not actively trade, hold, or intend to hold positions on the universe of equity issuances listed on the NYSE or NASDAQ, and whose principals and full-time professionals are restricted from actively trading.

E-mail: [email protected]

SOURCE SAR