Surge in U.S. Securities Litigation Risk: Analyzing the Recent $2.3 Trillion Increase

In an unprecedented revelation, the latest report from Securities Analytics Research (SAR) has highlighted a concerning trend in the U.S. financial landscape. According to their recent findings released on January 30, 2026, the risk associated with securities litigation for U.S. public companies surged by a staggering $2.3 trillion in the latter half of 2025.

This analysis is derived from a comprehensive examination of 11,392 corporate disclosures across over 4,660 public entities. The findings indicated that public companies listed on major exchanges like the NYSE and NASDAQ observed a shocking $14.1 trillion in market capitalization losses over the two-year span ending December 31, 2025. Such losses stem from significant single-day declines in stock prices, often triggered by High-Risk Adverse Corporate Events (ACEs).

Nessim Mezrahi, SAR’s Co-Founder and CEO, emphasized the seriousness of this situation, noting that a 4.33% rise in the frequency of High-Risk ACEs and a 19.7% increase in their aggregate severity had been identified when compared to the previous periods. The data underscores that U.S. public company directors and officers are confronting a significant escalation of securities litigation risk.

The report elaborated that across all eleven sectors defined by the Global Industry Classification Standard (GICS), an uptick in High-Risk ACE occurrences was discernible. Specifically, the cumulative losses attributable to High-Risk ACEs represent an increase of $2,316.28 billion since June 30, 2025, with an average loss of $129.4 million, marking an 11.7% rise.

Notably, the Financials, Health Care, and Information Technology sectors witnessed the highest increase in High-Risk ACEs, recording gains of 137, 130, and 129 incidents respectively within the same timeframe. This sectoral analysis revealed that Information Technology stands out with the highest market capitalization losses associated with these High-Risk events, amounting to $588.42 billion, followed by Financials at $446.61 billion.

The implications of these findings are substantial. Information Technology was not only the sector most affected in terms of raw loss but also held the highest median SAR Risk Score at 28.49%. Health Care and Consumer Discretionary followed, indicating that corporations in these sectors are increasingly vulnerable to adverse corporate actions and their consequent financial ramifications.

The SAR report serves as a crucial informational tool, providing near real-time analysis of litigation risks at the corporate disclosure level for companies listed on NYSE and NASDAQ. With the SAR Platform, stakeholders gain access to transparent and reliable data, allowing for informed decision-making in risk management.

In conclusion, SAR’s reporting points to a troubling trajectory regarding securities litigation risks in the U.S. corporate landscape. As market conditions evolve and regulatory environments shift, both investors and company executives must remain vigilant in recognizing the implications of these rising risks. The message is clear: comprehensive risk assessment and proactive measures are essential for navigating the complexities of the current financial landscape.