Pegasystems
In re Pegasystems Inc. Securities Litigation
No. 1:22-cv-11220-WGY
Lead Plaintiffs Construction Industry Laborers Pension Fund, Central Pennsylvania Teamsters Pension Fund – Defined Benefit Plan, and Central Pennsylvania Teamsters Pension Fund – Retirement Income Plan 1987 and Robbins Geller as Lead Counsel secured a recovery of $35 million for the benefit of eligible Settlement Class Members.
This case against computer software company Pegasystems Inc. (“Pegasystems” or the “Company”) stems from losses related to Defendants’ alleged concealment of a lawsuit by one of Pegasystems’ primary competitors contending that the Company had misappropriated the competitor’s trade secrets. The case alleges that beginning in 2012, Pegasystems’ senior executives orchestrated a scheme to misappropriate Appian Corporation’s trade secrets and confidential information. Upon discovering this alleged scheme, Appian sued Pegasystems in a Virginia state court on May 29, 2020. For the next 20 months, Defendants allegedly failed to publicly disclose even the existence of Appian’s lawsuit, or the fact that the Company could face massive liability as a result of Appian’s claims. As the Plaintiffs alleged, when Defendants finally disclosed the fact of Appian’s claims on February 16, 2022, Defendants falsely assured investors that Appian’s claims had no merit. Appian won a $2 billion jury verdict against Pegasystems in May 2022. Pegasystems’ stock price plummeted approximately 21% initially as a result, and later fell another 8% as the market processed the verdict.
The Class consists of all persons and entities who purchased or otherwise acquired the common stock of Pegasystems between June 16, 2020 and May 9, 2022, inclusive, and experienced loss. Excluded from the Settlement Class are Defendants and the Dismissed Defendant and their immediate families, the Company’s officers and directors at all relevant times, as well as their immediate families, Defendants’ and the Dismissed Defendant’s legal representatives, heirs, successors or assigns, and any entity in which Defendants or the Dismissed Defendant have or had a controlling interest. Also excluded is any Person who properly excluded himself, herself, itself or themselves by submitting a valid and timely request for exclusion. To the extent any Pegasystems employee benefit plan receives a distribution from the Net Settlement Fund, no portion shall be allocated to any person or entity who is excluded from the Settlement Class by definition.
The settlement was approved by the Court on September 25, 2024.
If you have any questions about the settlement or the litigation, please contact the Shareholder Relations Department at 1-800-449-4900.
Documents: