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Appian Wins $2B Against Pegasystems For Embezzling Trade Secrets

By Anusuya Lahiri
  • A Virginia jury ordered Pegasystems Inc (NASDAQ:PEGA) to pay its software rival Appian Corporation (NASDAQ:APPN) $2.04 billion in damages for misappropriating trade secrets.
  • The jury also found that Pegasystems violated the Virginia Computer Crimes Act. 
  • The jury further found Pegasystems' misappropriation of Appian's trade secrets willful and malicious. 
  • Appian brought the case to trial to protect its proprietary intellectual property, including its trade secrets.
  • The damages award issued by the Fairfax County Circuit Court jury followed a seven-week trial.
  • Christopher Winters, General Counsel at Appian, said, "We put forward strong evidence that Appian trade secrets were misappropriated by Pegasystems. The award of substantial damages to Appian is entirely appropriate given the nature and extent of what Pegasystems did."
  • Pegasystems held $332.2 million in cash and equivalents as of March 31.
  • Price Action: PEGA shares traded lower by 4% at $50.16 premarket on the last check Wednesday. APPN traded lower by 2.43% at $58.17.
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