LEGAL PROCEEDINGS
−Removed: Other than as discussed below, during the period covered by this report, there were no material developments in the legal proceedings disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.
+Added: Other than as discussed below, during the period covered by this report, there were no material developments in the legal proceedings disclosed in our Annual Report on Form 10-K for the year ended December 31, 2021 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2022.
Pegasystems Litigation
1 unchanged sentence
(“Pegasystems”) and Youyong Zou, a Virginia resident, in the Circuit Court for Fairfax County, Virginia.
+Added: Appian Corp v.
Pegasystems Inc.
1 unchanged sentence
2020-07216 (Fairfax Cty.
−Removed: Ct.), and on May 9, 2022, the jury in the case awarded us $2.036 billion in damages for misappropriation of our trade secrets and $1 in damages for violating the Virginia Computer Crimes Act.
−Removed: Pegasystems filed post-trial motions in which it seeks relief in the form of reducing the damages award or setting aside the jury’s verdict and either granting a new trial or entering judgment in Pegasystems’ favor.
−Removed: One of these motions was denied on July 28, 2022.
−Removed: We believe Pegasystems’ motions are without merit.
−Removed: We simultaneously filed a motion for attorneys’ fees and costs, as well as post-judgment interest on any award of attorneys’ fees and costs, based on the jury's finding that our trade secrets were willfully and maliciously misappropriated.
+Added: On May 10, 2022, we announced the jury awarded us $2.036 billion in damages for misappropriation of our trade secrets and $1 in damages for violating the Virginia Computer Crimes Act.
+Added: Pegasystems filed several post-trial motions seeking relief in the form of reducing the damages award or setting aside the jury’s verdict and either granting a new trial or entering judgment in Pegasystems’ favor.
+Added: All of these motions were denied, and final judgment was entered by the Court on September 15, 2022.
+Added: The final judgment reaffirmed the $2.036 billion in damages and also ordered Pegasystems to pay Appian $23.6 million in attorney's fees associated with the case as well as statutory post-judgment interest on the judgment at an annual rate of 6%, or approximately $122.0 million per year.
+Added: Defendant Youyong Zou has satisfied the judgment of $5,000 (plus interest) against him in lieu of appealing that judgment.
+Added: On September 15, 2022, Pegasystems filed a notice of appeal.
+Added: Pegasystems is not required to pay us the judgment, attorney’s fees, or post-judgment interest until all appeals are exhausted.
+Added: We cannot predict the outcome of any appeals or the time it will take to resolve them.
+Added: Like any judgment, there is no guarantee we will be able to collect all or any portion of the judgment.
On July 3, 2019, Pegasystems filed a claim against us and BPM.com, Inc., a market analyst company, in U.S.
3 unchanged sentences
1:19-cv-11461 (D.
−Removed: We filed counterclaims against Pegasystems for false advertising, alleging numerous marketing and advertising materials used by Pegasystems, including that a report purportedly authored by Jim Sinur, a former industry analyst, were false and/or misleading and, in the case of the Sinur report, Pegasystems failed to disclose that it had commissioned the report.
+Added: We filed counterclaims against Pegasystems for false advertising, alleging numerous marketing and advertising materials used by Pegasystems were false and/or misleading.
We also made a claim for defamation against Pegasystems based on public statements by Pegasystems’ executives.
−Removed: On July 15, 2022, the Court heard oral argument on the parties’ summary judgment motions but has not yet entered an order on either party’s motion.
+Added: The Court issued a summary judgment ruling on September 30, 2022, granting in part and denying in part each party’s motions, and narrowing the damages and claims in the case.
+Added: The Court also set a trial on each party’s claims for January 2023.
We continue to believe Pegasystems’ claims are without merit.
4 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.