ALEXANDRIA, Va. (Legal Newsline) - Fort Lauderdale's police and firefighters retirement fund is the plaintiff in a class action lawsuit against Pegasystems over a drop in the company's stock.
Three firms - Hausfeld LLP, Klausner Kaufman and Saxena White - represent the pension fund in a lawsuit filed in Virginia federal court on May 19. They hope to represent all who bought Pegasystems stock between May 29, 2020, and May 9, 2022.
The company develops customer relationship management software used in the industries of banking, mutual funds and securities, mortgage services, card services, insurance, healthcare management and telecommunications.
Rosy financial outlooks to possible investors included revenue generated from the theft of trade secrets from another company, the suit says. Appian Corporation sued PEGA on May 29, 2020, in Virginia state court, alleging PEGA retained the employee of a government contractor to secretly access Appian software.
After two years of not reporting the lawsuit to investors, a Virginia jury hit PEGA with a $2.036 billion verdict. The company's stock dropped 21% in one day - from $65.93 to $52.25.