Welcome to the Pegasystems Securities Settlement Website

This website has been established to provide general information related to the proposed Settlement of the class action lawsuit known as In re Pegasystems Inc. Securities Litigation, No. 1:22-cv-11220-WGY (the “Litigation”), and pending before the Honorable William G. Young in the United States District Court for the District of Massachusetts (the “Court”). The capitalized terms used on this website, and not otherwise defined, shall have the same meanings ascribed to them in the Stipulation of Settlement (the "Stipulation") dated April 23, 2024, which can be found and downloaded by clicking on the Case Documents tab above.

The Court ordered that the law firm of Robbins Geller Rudman & Dowd LLP represents the Settlement Class Members, including you. These lawyers are called Lead Counsel. If you want to be represented by your own lawyer, you may hire one at your own expense.

WHAT IS THIS LAWSUIT ABOUT?

As more fully described in the Notice of Pendency and Proposed Settlement of Class Action (the "Notice"), Lead Plaintiffs filed the Consolidated Amended Complaint for Violations of the Federal Securities Laws (“Complaint”) on October 18, 2022, alleging violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”). More specifically, Lead Plaintiffs alleged that Defendants made materially false and misleading positive statements and omissions concerning a lawsuit in Virginia state court brought against Pega by Appian Corporation ("Appian") that was tried to a verdict but is presently on appeal. Lead Plaintiffs assert that the intended purpose and effect of Defendants' false and misleading statements and omissions was to artificially inflate Pega's common stock price throughout the Settlement Class Period.

Lead Plaintiffs and Defendants participated in a voluntary confidential mediation session with John Van Winkle, of Winkle Baten Dispute Resolution. The mediation session was preceded by submission of mediation statements by the Settling Parties. The Settling Parties engaged in good faith negotiations but did not reach a settlement at the mediation session. Following the receipt of a mediator's proposal, on March 4, 2024, the parties agreed to settle the Litigation in return for a cash payment of $35 million to be paid by the Defendants and/or their insurers on behalf of Defendants, for the benefit of the Settlement Class, subject to the negotiations of the terms of a Stipulation of Settlement and approval by the Court. The Stipulation (together with the Exhibits thereto) reflects the final and binding agreement among the Settling Parties.

If you purchased or otherwise acquired Pegasystems Inc. ("Pega" or the "Company") common stock between June 16, 2020 and May 9, 2022, inclusive, and experienced loss, you are a Settlement Class Member. Excluded from the Settlement Class are: Defendants and the Dismissed Defendant and their immediate families, the Company's officers and directors at all relevant times, as well as their immediate families, Defendants' and the Dismissed Defendant's legal representatives, heirs, successors or assigns, and any entity in which Defendants or the Dismissed Defendant have or had a controlling interest. Also excluded from the Settlement Class is any Person who properly excludes himself, herself, itself, or themselves by submitting a valid and timely request for exclusion. To the extent any Pega employee benefit plan receives a distribution from the Net Settlement Fund, no portion shall be allocated to any person or entity who is excluded from the Settlement Class by definition.

WHAT DOES THE SETTLEMENT PROVIDE?

The Settlement provides that, in exchange for the release of the Released Claims (defined in the Notice) and dismissal of the Litigation, Defendants have agreed to pay or cause to be paid $35 million in cash to be distributed after Taxes, Tax Expenses, Notice and Administration Expenses, and any Court-approved attorneys’ fees and expenses, pro rata, to Settlement Class Members who send in a valid Proof of Claim form pursuant to the Court-approved Plan of Allocation. The Plan of Allocation is described in more detail in the Notice.

ADDITIONAL INFORMATION

Although the information on this website is intended to assist you, it does not replace the information contained in the Notice and the Stipulation, both of which can be found and downloaded by clicking on the Case Documents tab above. We recommend that you read the Notice and other relevant case documents carefully. You may also wish to read the answers to Frequently Asked Questions provided on this website.

YOUR LEGAL RIGHTS AND OPTIONS IN THIS SETTLEMENT

IMPORTANT DATES AND DEADLINES