Supreme Court of Virginia Agrees to Hear Appian Petition to Reinstate $2.036 Billion Verdict Against Pegasystems, Inc.

Rhea-AI Summary

Appian (APPN) announced that the Supreme Court of Virginia will hear its petition to reinstate the $2.036 billion judgment against Pegasystems (Pega) for trade secret misappropriation. The court granted the petition on all four issues raised regarding errors made by the Court of Appeals.

The original verdict stemmed from evidence showing Pega employed a 'spy' to analyze Appian's software internals, improve their product, and generate billions in revenue. The jury's unanimous decision followed seven weeks of testimony and extensive documentation.

While the Supreme Court will also hear Pega's cross-appeal arguments regarding evidence sufficiency, these claims were previously rejected by both trial court and Court of Appeals. Notably, Pega's violation of the Virginia Computer Crimes Act remains confirmed as they declined to appeal this ruling.

Positive

• Supreme Court of Virginia agreed to hear petition to reinstate $2.036B verdict
• Original jury verdict of willful trade secret misappropriation could be restored
• Pega's Virginia Computer Crimes Act violation remains confirmed and final

Negative

• Final outcome of appeals process remains uncertain
• Timeline for resolution is undefined
• Previous $2.036B judgment currently not in effect pending appeal

News Market Reaction – APPN

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+2.05% News Effect

On the day this news was published, APPN gained 2.05%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

MCLEAN, Va., March 7, 2025 /PRNewswire/ -- Appian announced today that the Supreme Court of Virginia agreed to hear its petition seeking to reinstate the $2.036 billion judgment against Pegasystems, Inc. ("Pega"). The petition, which raised four different errors made by the Court of Appeals, seeks to restore the jury's verdict of willful and malicious trade secret misappropriation. The petition was granted on each of the four issues. 

Appian originally brought the case to trial to ensure the protection of its intellectual property, including its trade secrets. The unanimous verdict from the jury was based on seven weeks of testimony from dozens of witnesses and thousands of pages of evidence introduced to show that Pegasystems employed a "spy" to analyze the inner workings of Appian's software, improve its own product, and generate billions of dollars in revenue based on its misappropriation.

"We are encouraged that the Supreme Court of Virginia has agreed to review our case. We look forward to being heard by the highest court in Virginia and remain hopeful the Court will reinstate the jury's verdict and corresponding damages, which were in line with the scope of wrongdoing found in this case and which we believe is the correct legal outcome," stated Christopher Winters, General Counsel of Appian.

The Supreme Court also agreed to hear Pega's cross-appeal issues, which presented arguments regarding the sufficiency of the evidence of trade secret misappropriation. Those arguments have been rejected by both the trial court and the Court of Appeals. The Virginia jury found Pegasystems violated the Virginia Computer Crimes Act, but Pegasystems declined to appeal that ruling below, meaning that the Virginia Computer Crimes Act violation by Pegasystems remains confirmed and final.

The petition will be subject to further briefing and argument in front of the Supreme Court of Virginia. Appian cannot predict the outcome of any appeals or the time it will take to resolve them.

Learn more about the Appian and Pega case here: https://appian.com/pega-verdict

Forward-Looking Statements

This press release includes forward-looking statements. All statements contained in this press release other than statements of historical facts, including statements regarding Appian's ability to collect on the judgment, the outcome of any appeal, and the timing of such matters, are forward-looking statements. All aspects of the case could be subject to further appeal by Appian or Pegasystems. Appian cannot predict the outcome of any appeals or the time it will take to resolve them. The words "anticipate," "believe," "continue," "estimate," "expect," "intend," "may," "will," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to a number of risks and uncertainties, including the risks and uncertainties set forth in the "Risk Factors" section of Appian's Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission on February 19, 2025 and other reports that Appian has filed with the Securities and Exchange Commission. Appian is under no duty to update any of these forward-looking statements after the date of this press release to conform these statements to actual results or revised expectations, except as required by law.

About Appian

Appian is The Process Company. We deliver a software platform that helps organizations run better processes that reduce costs, improve customer experiences, and gain a strategic edge. Committed to client success, we serve many of the world's largest companies across industries. For more information, visit appian.com. [Nasdaq: APPN]

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SOURCE Appian

FAQ

What is the current status of Appian's $2.036 billion lawsuit against Pegasystems?

The Supreme Court of Virginia has agreed to hear Appian's petition to reinstate the $2.036 billion verdict, which was previously overturned by the Court of Appeals.

What were the original allegations in APPN's lawsuit against Pegasystems?

Appian alleged that Pegasystems employed a spy to analyze Appian's software internals, improve their product, and generate billions in revenue through trade secret misappropriation.

Has Pegasystems been found guilty of any charges in the Appian case?

Yes, Pegasystems was found guilty of violating the Virginia Computer Crimes Act, a ruling they didn't appeal and remains final.

What is the next step in APPN's legal proceedings against Pegasystems?

The case will undergo further briefing and arguments before the Supreme Court of Virginia, with timing and outcome uncertain.