Appian has filed a new trade‑secret lawsuit against Pegasystems Inc. after the Virginia Supreme Court remanded the case for retrial on January 8, 2026. The filing follows a long‑running dispute that began with a $2.04 billion jury award in 2022, which was overturned by the Virginia Court of Appeals in July 2024 and reaffirmed by the Supreme Court in January 2026.
The lawsuit centers on Appian’s claim that Pegasystems misappropriated proprietary technology and trade secrets between 2012 and 2014. Pegasystems denies the allegations, arguing the information was not confidential. The remand means the case will proceed to a new trial, keeping the legal exposure alive for both parties and potentially adding significant litigation costs and uncertainty to their operations.
Pegasystems’ recent financial performance provides important context. In its third‑quarter 2025 earnings, the company reported revenue of $381.35 million—up 17 % year‑over‑year and 28 % in cloud revenue—surpassing consensus estimates of $351.54 million. Earnings per share were $0.30 versus the expected $0.20, a beat of $0.10. The strong results reflect a shift to subscription‑based licensing and robust demand for cloud‑based automation solutions, underscoring Pegasystems’ resilience despite the ongoing legal dispute.
Management comments highlight the differing perspectives. Appian’s General Counsel, Jaye Campbell, said the Supreme Court decision “does not alter the core facts of Pega’s misappropriation” and that Appian will present evidence to a new jury. Pegasystems’ COO and CFO, Kenneth Stillwell, described the ruling as “vindication” and noted that the court’s affirmation of the appellate decision confirms the original verdict was “fundamentally flawed.”
The lawsuit’s implications extend beyond the legal arena. For Appian, the action reinforces its commitment to protecting intellectual property and may deter future infringement. For Pegasystems, the litigation remains a potential liability, but the company’s strong earnings and market confidence suggest that investors are weighing the legal risk against its operational performance. The case also highlights the competitive intensity in the low‑code and business‑process‑automation market, where proprietary technology can be a key differentiator.
Market reaction to the remand has been muted, as analysts and investors have focused on Pegasystems’ robust earnings and growth trajectory. The legal development is viewed as a long‑term risk that is unlikely to materially alter the company’s valuation in the short term, but it remains a factor to monitor in future earnings calls and guidance updates.
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