Pegasystems Investor Claims Advance Over $2 Billion IP Verdict

Pegasystems Inc. investors adequately alleged securities fraud claims against the software company and its CEO for misleading them about trade secret misappropriation that led to a more than $2 billion verdict, a federal court said.

But the investors failed to show that Pegasystems’ chief financial officer was aware of the misconduct, Judge William G. Young said Monday for the US District Court for the District of Massachusetts.

Pegasystems has appealed the Virginia state court trade secret judgment, a high-water mark in a trend of juries increasingly willing to punish corporate espionage harshly.

Meanwhile, the proposed class action itself exposes Pegasystems ...