July 30 (Reuters) - Software company Pegasystems ( PEGA )

convinced a Virginia appeals court on Tuesday to throw

out a $2 billion jury verdict for rival Appian in a

court battle over Pegasystems' ( PEGA ) alleged theft of Appian's trade

secrets.

The award from 2022 had been the largest damages verdict in

Virginia court history, the Court of Appeals of Virginia said in

the decision.

McLean, Virginia-based Appian had said in a 2020 lawsuit

that Pegasystems ( PEGA ) hired a contractor to steal confidential

information from Appian's platform in order to improve its own

products and better train its sales force.

"We are extremely pleased by today's decision throwing out

an award we believe was never rational," a Pegasystems ( PEGA )

spokesperson said in a statement.

A spokesperson for Appian did not immediately respond to a

request for comment.

(Reporting by Blake Brittain in Washington)