CASES
FalconStor Software, Inc.
Class Period: Feb 5, 2009 to Sep 29, 2010
Lead Plaintiff Deadline: Nov 30, 2010 + Deadline passed
Summary of Case:
A securities class action has been filed against FalconStor Software, Inc. (FALC) ("Falconstor" or the "Company") on behalf of all securities purchasers from February 5, 2009 through September, 2010, inclusive ("Class Period"), in the United States District Court for the the Eastern District of New York.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding FalconStor'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.
If you purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.