Pegasystems (NASDAQ: PEGA) wins Virginia Supreme Court case ruling

Rhea-AI Filing Summary

Pegasystems Inc. reported a significant legal development in its dispute with Appian Corp. The Supreme Court of Virginia unanimously affirmed the July 30, 2024 decision of the Court of Appeals of Virginia, which had reversed the prior judgment for Appian on the Virginia Uniform Trade Secrets Act (VUTSA) claims in the case Appian Corp. v. Pegasystems Inc. and Youyong Zou. The Supreme Court ordered the case to be sent back to the trial court for a new trial consistent with its opinion. Pegasystems also informed employees about this outcome via an internal email, which is included as an exhibit.

Positive

• Virginia Supreme Court unanimously affirmed a reversal of the prior judgment for Appian on VUTSA claims, eliminating that trial-level judgment and sending the case back for retrial.

Negative

• None.

Insights

Litigation and risk analyst

Virginia Supreme Court backs prior reversal of a judgment against Pegasystems, sending the trade secrets case to retrial.

The filing explains that the Supreme Court of Virginia unanimously affirmed the Court of Appeals decision that had reversed a judgment in favor of Appian on VUTSA claims in Appian Corp. v. Pegasystems Inc. and Youyong Zou. This means the earlier trial-level judgment on those trade secret claims no longer stands in its prior form and the case will return to the trial court for a new proceeding aligned with the higher court’s guidance.

From a risk perspective, a unanimous affirmance of a reversal is generally favorable compared with leaving an adverse judgment in place, although the matter is not fully resolved because it has been remanded for retrial. Future court activity in the remanded case will determine the eventual financial and operational impact, but this step reduces immediate finality risk from the prior judgment.

The company also circulated an internal email to employees about the lawsuit, attached as an exhibit, indicating management’s effort to communicate the status of this high-profile dispute. Subsequent court milestones in the retrial process will shape the ultimate outcome based on the Supreme Court’s opinion.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549 

____________________

 FORM 8-K

____________________

Current Report

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 8, 2026

____________________

PEGASYSTEMS INC.

(Exact name of Registrant as specified in its charter)

____________________

Massachusetts			1-11859			04-2787865
(State or other jurisdiction of incorporation)			(Commission File Number)			(IRS Employer Identification No.)

225 Wyman Street, Waltham, MA 02451

(Address of principal executive offices, including zip code)

(617) 374-9600

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions:

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading symbol(s)			Name of each exchange on which registered
Common Stock, $.01 par value per share			PEGA			NASDAQ Global Select Market

Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).                         

                                                Emerging growth company ☐

If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 8.01. Other Events

On January 8, 2026, the Supreme Court of Virginia unanimously affirmed in full the July 30, 2024 decision of the Court of Appeals of Virginia reversing the judgment for Appian Corp. on the VUTSA claims in the case titled Appian Corp. v. Pegasystems Inc. and Youyong Zou, Circuit Court of Fairfax County, Virginia. The Supreme Court ordered the matter to be remanded for retrial consistent with its opinion.

On January 8, 2026, Pegasystems Inc. sent to its employees the email attached as Exhibit 99.1 with respect to the lawsuit styled Appian Corp. v. Pegasystems Inc. & Youyong Zou.

Item 9.01     Financial Statements and Exhibits

Exhibit No.						Description
99.1						Email to employees of Pegasystems Inc. January 8, 2026
104						Cover Page Interactive Data File (formatted as Inline XBRL)

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

						Pegasystems Inc.
Dated:			January 9, 2026			By:			/s/ KENNETH STILLWELL
									Kenneth Stillwell
									Chief Operating Officer and Chief Financial Officer
									(Principal Financial Officer)

FAQ

What legal update did Pegasystems (PEGA) report in this 8-K?

Pegasystems reported that on January 8, 2026, the Supreme Court of Virginia unanimously affirmed the Court of Appeals of Virginia’s July 30, 2024 decision reversing the judgment for Appian Corp. on VUTSA claims in Appian Corp. v. Pegasystems Inc. and Youyong Zou and ordered the case remanded for retrial.

How did the Virginia Supreme Court rule in the Appian v. Pegasystems case?

The Supreme Court of Virginia unanimously affirmed in full the Court of Appeals of Virginia’s decision that had reversed the judgment for Appian Corp. on the VUTSA claims and directed that the matter be remanded to the trial court for retrial consistent with its opinion.

Does the ruling end the Appian v. Pegasystems lawsuit?

No. The Supreme Court of Virginia ordered that the case be remanded for retrial consistent with its opinion, meaning further proceedings will occur in the trial court rather than the dispute ending at this stage.

What is the connection between Pegasystems and Youyong Zou in this case?

Pegasystems and Youyong Zou are both named parties in the case titled Appian Corp. v. Pegasystems Inc. and Youyong Zou, as referenced in the description of the Virginia court decisions.

How did Pegasystems communicate this court decision internally?

On January 8, 2026, Pegasystems sent an email to its employees about the lawsuit Appian Corp. v. Pegasystems Inc. & Youyong Zou, which is attached to the report as Exhibit 99.1.

What exhibits are included with this Pegasystems (PEGA) 8-K filing?

The filing includes Exhibit 99.1, an email to employees of Pegasystems Inc. dated January 8, 2026, and Exhibit 104, the cover page interactive data file formatted as Inline XBRL.