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PEGA.US
id: 1203

Pegasystems (PEGA) $35 Million Shareholder Settlement

$35,000,000
Cash Settlement
D. Massachusetts
Court
1:22-cv-11220
Case number
06/16/2020
Class period Start
05/09/2022
Class period End
10/07/2024
Claim deadline

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 Type
US Securities Class Action
Case Status
Distribution Started
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
05/19/2022
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
Court hearing date
09/19/2024
Exclusion deadline
08/29/2024
Objection deadline
08/29/2024
Trades matching type
FIFO

Frequently Asked Questions

Who is eligible for this settlement?

All persons and entities who purchased or otherwise acquired the common stock of Pegasystems between June 16, 2020 and May 9, 2022, inclusive.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

How much will my payment be?

The final payout amount depends on your specific trades and the number of investors participating in the settlement.

If 100% of investors file their claims - the average payout will be $0.71 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $2.84 per share.

What is 11thestate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

  1. Prepare documents for your payout.

  2. Audit the claim to make sure you get the maximum payout.

  3. File a claim with the settlement administrator.

  4. Interact with the settlement administrator to resolve emerging issues.

  5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.