Pegasystems $35 Million Securities Class Action Settlement

If you purchased or otherwise acquired the common stock of Pegasystems Inc. between June 16, 2020, and May 9, 2022, inclusive, you may be eligible to claim a portion of a $35 million class action settlement.

Pegasystems Inc. has agreed to pay $35,000,000 to settle a class action lawsuit for alleged misrepresentations and omissions concerning a lawsuit brought against them by Appian Corporation.

Who can submit a claim?

To be a member of the Settlement Class, you must have purchased or otherwise acquired Pegasystems common stock between June 16, 2020, and May 9, 2022, inclusive, and experienced a loss.

How much can class members get?

The average distribution per Pegasystems common share under the Plan of Allocation is approximately $2.07 before deductions for taxes, notice and administration costs, and attorneys’ fees and expenses.

Class Members' actual recovery will depend on the total number of valid claims submitted and the amount of their individual "Recognized Loss Amounts".

The Recognized Loss Amount is calculated based on the date of purchase and sale of Pegasystems stock and the inflation per share during the holding period.

• For shares sold before February 17, 2022: The Recognized Loss Amount is $0.00.
• For shares sold between February 17, 2022, and September 16, 2022: The Recognized Loss Amount is the lesser of the decline in inflation during the holding period or the purchase price minus the sale price.
• For shares sold between September 17, 2022, and December 16, 2022: The Recognized Loss Amount is the least of the decline in inflation during the holding period, the purchase price minus the sale price, or the purchase price minus the average closing price between September 19, 2022, and the date of sale.
• For shares held as of December 16, 2022: The Recognized Loss Amount is the lesser of the decline in inflation during the holding period or the purchase price minus $34.43.

Is proof required to submit a claim?

Yes, claimants need to provide proof of their transactions in Pegasystems common stock. This includes copies of broker confirmations or other documentation of purchases, acquisitions, and sales of Pegasystems stock during the Settlement Class Period.

Proof must include the trade date, number of shares, and total purchase or sale price.

How to claim an award

To claim an award, you need to submit a completed and signed Proof of Claim form along with the required documentation. You can file a claim online or mail your completed form to the Claims Administrator at the following address:

Pegasystems Securities Settlement

Claims Administrator

c/o Gilardi & Co. LLC

P.O. Box 301135

Los Angeles, CA 90030-1135

Claim instructions

Follow these steps to submit a claim:

1. Download and print the Proof of Claim form from the official settlement website.
2. Fill out the form with your personal information and details of your Pegasystems stock transactions.
3. Attach copies of broker confirmations or other documentation for each transaction.
4. Sign the form and mail it to the Claims Administrator or submit it online.

How do claims get paid?

Once your claim is approved, you will receive a payment from the Net Settlement Fund. Payments will be made by check or electronic transfer, depending on the option you select on your Proof of Claim form.

$35,000,000 Settlement Fund

The settlement fund of $35,000,000 will cover the following:

• Payments to eligible Settlement Class Members based on their Recognized Loss Amounts.
• Notice and administration costs.
• Attorneys’ fees not to exceed 33% of the Settlement Amount, plus expenses not to exceed $450,000.
• Lead Plaintiffs' time and expenses incurred in representing the Settlement Class, up to $20,000.

Important dates

• Deadline to File a Claim: October 7, 2024
• Fairness Hearing: September 19, 2024

When is the Pegasystems Securities Settlement payout date?

The payout date will be determined after the Court approves the Settlement and all claims have been processed. This process can take several months.

Why is there a class action settlement?

The class action settlement was reached to resolve allegations that Pegasystems made materially false and misleading statements and omissions regarding a lawsuit brought against them by Appian Corporation. The lawsuit alleged misappropriation of Appian’s trade secrets, and the trial resulted in a significant verdict against Pegasystems.

What happens next?

The next steps include the Fairness Hearing on September 19, 2024, where the Court will decide whether to approve the Settlement. If approved, the Claims Administrator will process the claims and distribute the Net Settlement Fund to eligible Settlement Class Members.