Securities class action litigation has been filed on behalf of investors who purchased the common stock of Pegasystems Inc. (“Pegasystems” or the “Company”) (Nasdaq: PEGA) from May 29, 2020 through May 9, 2022, inclusive (the “Class Period”).
If you purchased Pegasystems common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than July 18, 2022. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Pegasystems investors who wish to learn more about the litigation and how to seek appointment as lead plaintiff complete the form below, text or email firstname.lastname@example.org, or call Sharon M. Lee of Lieff Cabraser at 1-800-541-7358.
Pegasystems, incorporated in Massachusetts and headquartered in Cambridge, develops customer relationship management software that automates customer interactions across transaction-intensive enterprises. Pegasystems’ software is used in the banking, mutual funds and securities, mortgage services, card services, insurance, healthcare management, and telecommunications industries.
The securities class action alleges that defendants misrepresented and/or failed to disclose that: (1) Pegasystems had engaged in corporate espionage and misappropriation of trade secrets to better compete against a firm named Appian Corporation (“Appian”); (2) Defendants’ product development and associated success was largely attributable to Pegasystems’ corporate espionage and trade secret theft; (3) Defendants engaged in a scheme to steal Appian trade secrets with the knowledge and involvement of Pegasystems’ CEO; (4) the Company’s CEO and other officers and employees did not comply with the Company’s written Code of Conduct, including its prohibitions on “stealing” confidential information from a competitor and “misrepresenting your identity in hopes of obtaining confidential information”; and (5) the Company was “unable to reasonably estimate damages” in a lawsuit brought by Appian against Pegasystems.
On May 29, 2020, Pegasystems was sued by Appian for stealing Appian’s trade secrets. Appian alleged that Pegasystems had retained the employee of a government contractor from 2012 to 2014, whom Company personnel called a “spy,” to access Appian’s software and transmit it to Pegasystems for the purpose of improving the Company’s own products and sales force training.
Pegasystems failed to disclose Appian’s lawsuit in its Securities and Exchange Commission (“SEC”) filings, in violation of SEC reporting requirements until February 16, 2022, only one month before the jury trial was scheduled to begin, on March 21, 2022.
After market close on May 9, 2022, Pegasystems revealed that the jury found that the Company had engaged in “willful and malicious” misappropriation of Appian’s trade secrets and awarded Appian more than $2 billion. At trial, evidence was reportedly presented showing that Pegasystems’ founder and CEO, defendant Alan Trefler, had personally met with and received Appian trade secrets from the “spy.” On this news, the price of Pegasystems stock dropped $13.68 per share, or 20.75%, from its closing price of $65.93 on May 9, 2022, to close at $52.25 per share on May 10, 2022, on extremely heavy trading volume.
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York, Nashville, and Munich, is an internationally-recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Recognized as a “Plaintiffs’ Powerhouse” by Law360, Lieff Cabraser has litigated some of the most important civil cases in the United States, and has assisted clients in recovering over $124 billion in verdicts and settlements. Law360 has selected Lieff Cabraser as one of the Top 50 law firms nationwide for litigation, highlighting our firm’s “laser focus” and noting that our firm routinely finds itself “facing off against some of the largest and strongest defense law firms in the world.” In 2021, The American Lawyer named our firm its “Boutique Litigation Firm of the Year.” Benchmark Litigation has named Lieff Cabraser one of the “Top 10 Plaintiffs’ Firms in America,” and listed us as its “2020 California Plaintiff Firm of the Year.” Lieff Cabraser is committed to ensuring access to justice for all.