Robbins Geller Clinches $35 Million Recovery for Pegasystems Investors

Company Allegedly Concealed Multi-Billion Dollar Trade Secrets Dispute From Investors

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June 14, 2024

Robbins Geller Rudman & Dowd LLP secured a $35 million investor recovery in a case against computer software company Pegasystems that 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. In May 2024, U.S. District Judge William G. Young granted preliminary approval of the settlement. 

The case concerns allegations 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. 

“We’re pleased with the outcome. The recovery sends a strong message of warning to companies that would attempt to defraud investors,” said partner Debra J. Wyman 

Robbins Geller attorneys representing the plaintiffs include Debra J. Wyman, Chad Johnson, Christopher D. Stewart, Nicole Q. Gilliland, Megan A. Rossi, and Snehee Khandeshi. 

About Robbins Geller 

Robbins Geller Rudman & Dowd LLP is one of the world’s leading complex litigation firms, representing plaintiffs in securities fraud, shareholder derivative, antitrust, corporate takeover, and consumer fraud and privacy cases. With 200 lawyers in 10 offices, Robbins Geller is one of the world’s largest plaintiffs’ firms, and the Firm’s attorneys have obtained many of the largest securities, antitrust, and consumer class action recoveries in history. 

Over the last decade, our Firm has been ranked #1 on the ISS Securities Class Action Services law firm rankings for six out of the last ten years for securing the most monetary relief for investors. In the last four years, Robbins Geller recovered $6.6 billion for investors in securities-related class action cases – over $2.2 billion more than any other law firm during that time. The Firm secured the largest-ever securities fraud class action settlement — $7.2 billion — in In re Enron Corp. Securities Litigation.   

For media inquiries, please contact media@rgrdlaw.com or call (619) 338-3821. 

In re Pegasystems Inc. Securities Litigation, No. 1:22-cv-11220-WGY (D. Mass.).

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