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Case Status:    SETTLED
On or around 12/19/2000 (Date of order of final judgment)

Filing Date: November 18, 1997

According to the Company’s Form 10-K for the fiscal year ended December 31, 2000, in September 2000, the parties entered into a stipulation of settlement,
pursuant to which the Company agreed to pay $5.25 million in shares of its
common stock or in cash for the benefit of a stipulated class defined to
include all purchasers of the Company's common stock between July 29, 1997 and
October 29, 1997, inclusive (the "Class"), in return for the action being
dismissed in its entirety. On December 19, 2000, the Court entered a final
judgement, approving the terms of the settlement as fair, reasonable, adequate
and in the best interests of the Class, and dismissing the action with
prejudice. Pursuant to the Court's final order, the Company issued to the
Settlement Fund 1,385,000 shares of Pegasystems common stock and contributed
$250,000 in cash. Certain members of the Board of Directors purchased the
shares from the Settlement Fund for $5.0 million in cash. Together with cash
previously advanced, the total value paid to the Class for the settlement of
the Chalverus litigation was $5.25 million.

As a result of complaints filed in 1997 and 1998 in the United States District Court of Massachusetts (the "Court"), which were subsequently consolidated into a single complaint, (the "Amended Complaint" or the "Chalverus Case"), the Company has been engaged in litigating matters related to a restatement of its financial statements in 1997. The Amended Complaint alleged that the Company and two officers caused the issuance of
false and misleading financial statements for the fiscal quarter ended June 30,
1997 by inappropriately including $5 million in revenue from a series of
contracts with First Data Resources, Inc. The Amended Complaint alleged that as
a result of the inclusion of such revenue in the Company's financial statements
for that quarter, the market price of the Company's common stock was
artificially inflated, causing damage to purchasers of the Company's common
stock.

The original Complaint in the action charges the defendants with violations of the federal securities laws (Sections 10(b) and 20 of the Securities Exchange Act of 1934) for, among other things, misrepresenting and/or omitting material information concerning Pegasystems' reported operating results for the second quarter of fiscal year 1997 (ended June 30, 1997).

COMPANY INFORMATION:

Sector: Technology
Industry: Software & Programming
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: PEGA
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. Massachusetts
DOCKET #: 97-CV-12570
JUDGE: Hon. William G. Young
DATE FILED: 11/18/1997
CLASS PERIOD START: 07/02/1997
CLASS PERIOD END: 11/14/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Shapiro Haber & Urmy LLP (Boston)
    75 State Street, Shapiro Haber & Urmy LLP (Boston), MA 02109
    617.439.3939 617.439.0134 · info@shulaw.com
No Document Title Filing Date
COURT: D. Massachusetts
DOCKET #: 97-CV-12570
JUDGE: Hon. William G. Young
DATE FILED: 03/30/1998
CLASS PERIOD START:
CLASS PERIOD END:
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Shapiro Haber & Urmy LLP (Boston)
    75 State Street, Shapiro Haber & Urmy LLP (Boston), MA 02109
    617.439.3939 617.439.0134 · info@shulaw.com
No Document Title Filing Date
No Document Title Filing Date