February 11, 2026
Pegasystems has agreed to pay $7 million to settle three shareholder derivative suits in Massachusetts state and federal courts alleging the software company’s top officials sat on details of a 2020 trade secrets suit that led to a now-overturned $2 billion verdict.
The deal, if approved by judges in the two courts, would resolve claims against Pegasystems founder and CEO Alan Trefler and board members stemming from the suit filed by competitor Appian Corp. in Virginia.Â
The plaintiffs alleged in the three cases that the board’s failure to prevent alleged corporate espionage by Pegasystems employees, and a “corporate culture that encouraged and protected illegal activity and unethical conduct in pursuit of profits,” which led to the lawsuit, eroded the value of the company and their shares.
…
Jayne Birch and Robert Garfield are represented by Richard Speirs of Cohen Milstein Sellers & Toll PLLC, Peretz Bronstein of Bronstein Gewirtz & Grossman LLC, Rusty E. Glenn and Brett D. Stecker of Shuman Glenn & Stecker, and Michele Carino of Greenwich Legal Associates LLC.