Robbins Umeda LLP has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at FalconStor Software, Inc. (“FalconStor” or the “Company”) (NASDAQ: FALC). FalconStor develops, manufactures, and sells network storage software solutions in the United States and internationally. It also provides related maintenance, implementation, and engineering services. FalconStor was founded in 1989 and is headquartered in Melville, New York.
Robbins Umeda LLP’s investigation concerns the Company’s announcement on September 29, 2010 that, effective immediately, ReiJane Huai, who founded the company a decade ago, resigned from his positions as Chairman of the Board of Directors, President, and Chief Executive Officer of FalconStor. 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. As a result of this announcement, shares of FalconStor fell to $3.15, a decline of more than 22% from the closing price of $4.06 on September 28, 2010.
If you are a shareholder of FalconStor, plan to continue to hold your shares, and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at firstname.lastname@example.org.