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PEGA.US
id: 1203

Pegasystems (PEGA) $35 Million Shareholder Settlement

D. Massachusetts
Court
1:22-cv-11220
Case number
16 Jun 2020
Class period Start
09 May 2022
Class period End
Pegasystems (PEGA) agreed to settle $35M with investors to end claims over the corporate espionage against competitor Appian.

Case details:

In May 2020, Appian Corporation sued Pegasystems, claiming trade secret theft and violation of computer crime laws.

On May 9, 2022, Pegasystems announced that a Virginia court jury awarded Appian over $2B for trade secret misappropriation.

During the seven-week trial, the jury received strong evidence backing Appian's claims. Additionally, it was shown that Alan Trefler, Pegasystem's CEO, was present at a meeting where Appian's trade secrets were shared with Pegasystems.

On this news, $PEGA fell 20% on May 10, 2022.

Based on all these events, Pegasystems was accused of the following points:
  • PEGA engaged in corporate espionage against Appian, stealing trade secrets.
  • This unethical behavior was spearheaded by the CEO and violated the company's Code of Conduct.

Pegasystems has now decided to end all allegations related to the corporate espionage against Appian by paying a $35M settlement to investors.

Case Status
Stipulative Settlement
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
0.71
Filing date
19 May 2022
Plaintiffs
City of Fort Lauderdale Police and Firefighters' Retirement System
Attorneys
Hutchings Barsamian Mandelcorn, LLP, Robbins Geller Rudman & Dowd LLP
Defendants
Alan Trefler
Judge
Leonie M. Brinkema
Trades matching type
FIFO
+$35,000,000
Cash Settlement Amount

Frequently Asked Questions

Pegasystems Inc

Pegasystems Inc. develops, markets, licenses, hosts, and supports enterprise software in the United States, rest of the Americas, the United Kingdom, rest of Europe, the Middle East, Africa, and th...

    Ticker
    PEGA.US
    ISIN
    US7055731035
    CIK
    1013857
    Sector
    Technology
    Industry
    Software - Application
    Country
    USA
    Address
    One Main Street, Cambridge, MA, United States, 02142