APPN - Appian Just Locked in a Big Payday. Here's What Investors Need to Know
2023-09-11 05:35:00 ET
Appian (NASDAQ: APPN) stock soared last May after the low-code software company won a $2.036 billion award in a case against rival Pegasystems (NASDAQ: PEGA) over theft of trade secrets. In the case, Appian alleged -- and a jury agreed -- that Pegasystems had "hired a spy to infiltrate Appian," giving Pega trade secrets that Pega then used in its own products. That decision was rendered 16 months ago, and the case is still working its way through the appeals process, which could take years.
Up until now, Appian had no way to ensure that it would benefit from the decision, but the company took a significant step to correct that on Thursday. It signed a $500 million judgment preservation insurance policy that will pay it the difference between the final judgment and $500 million if the final judgment after all appeals is less than $500 million.
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Appian Just Locked in a Big Payday. Here's What Investors Need to Know