Case Page

 

Case Status:    SETTLED
On or around 02/17/2015 (Other)

Filing Date: October 01, 2010

According to a press release dated October 01, 2010, the complaint charges FalconStor and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company develops, manufactures and sells network storage software solutions in the United States and internationally. It also provides related maintenance, implementation, and engineering services.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and its prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (i) that the Company was experiencing weak demand for its products and services; (ii) that the Company was making improper payments to secure a contract with at least one of the Company’s customers; and (iii) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its prospects.

Then, on September 29, 2010, FalconStor announced that ReiJane Huai “resigned from all of his positions with the Company, effective immediately.” The press release stated that Mr. Huai “tendered his resignation following his disclosure that certain improper payments were allegedly made in connection with the Company’s contract with one customer.” In reaction to Mr. Huai’s resignation and the revelation of improper payments to a certain customer, shares of the Company’s stock fell $0.91 per share, or 22%, to close at $3.15 per share, on unusually heavy trading volume.

It was Ordered that case number 10-CV-4632 be consolidated into lead case number 10-CV-4572. It was Ordered that case number 10-CV-4632 be administratively closed and all further entries be made on the lead case.

On August 29, 2011, the Court granted the motion for the appointment of Lead Plaintiff and Lead Counsel in this case.

On May 6, 2013, the parties entered into a Stipulation of Settlement. On November 1, the Court preliminarily approved the Settlement. On May 8, 2014, the Court adopted the Report and Recommendations of the US Magistrate Judge, granting approval of the Settlement.

COMPANY INFORMATION:

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

SECURITIES INFORMATION:

Ticker Symbol: FALC
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: E.D. New York
DOCKET #: 10-CV-04572
JUDGE: Hon. Edward R. Korman
DATE FILED: 10/01/2010
CLASS PERIOD START: 02/05/2009
CLASS PERIOD END: 09/29/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Dyer & Berens LLP
    303 East 17th Avenue, Suite 300, Dyer & Berens LLP, CO 80203
    303.861.1764 303.861.1764 ·
  2. Holzer Holzer & Fistel, LLC (Atlanta)
    200 Ashford Center North, Suite 300, Holzer Holzer & Fistel, LLC (Atlanta), GA 30338
    770.392.0090 770.392.0090 ·
  3. Robbins Geller Rudman & Dowd LLP (Melville)
    58 South Service Road, Suite 200, Robbins Geller Rudman & Dowd LLP (Melville), NY 11747
    631.367.7100 631.367.1173 ·
No Document Title Filing Date
COURT: E.D. New York
DOCKET #: 10-CV-04572
JUDGE: Hon. Edward R. Korman
DATE FILED: 11/03/2011
CLASS PERIOD START: 03/12/2008
CLASS PERIOD END: 09/29/2010
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. The Rosen Law Firm P.A. (New York)
    275 Madison Avenue, 34th Floor, The Rosen Law Firm P.A. (New York), NY 10016
    (212) 686-1060 (212) 202-3827 ·
No Document Title Filing Date