SOURCE: Dyer & Berens LLP

Dyer & Berens LLP

October 06, 2010 11:05 ET

Dyer & Berens LLP Files Class Action on Behalf of FalconStor Software, Inc. Investors; Announces Upcoming Deadline (FALC)

DENVER, CO--(Marketwire - October 6, 2010) -  The law firm of Dyer & Berens LLP ( announced today that it has filed a class action in the United States District Court for the Eastern District of New York on behalf of purchasers of FalconStor Software, Inc. ("FalconStor") (NASDAQ: FALC) common stock during the period between February 5, 2009 and September 29, 2010 (the "Class Period").

If you wish to serve as a lead plaintiff, you must seek such an appointment with the court no later than November 30, 2010. A "lead plaintiff" directs the litigation and participates in important decisions including whether to accept a settlement offer and how much of a settlement to accept for the class in the action. The lead plaintiff here will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. Any member of the putative class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

If you wish to discuss this action, the lead plaintiff process, or have any questions concerning this notice or your rights or interests in the litigation, please contact plaintiff's counsel, Jeffrey A. Berens, Esq., at (888) 300-3362 x302, (303) 861-1764, or via email at

On September 29, 2010, FalconStor disclosed that its President, CEO and Chairman of the Board, ReiJane Huai, resigned from all of his positions with the Company, effective immediately. According to the Company's statement, "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." On this troubling news, FalconStor's stock price plummeted more than 20 percent.

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.

The law firm of Dyer & Berens LLP focuses on complex class action litigation on behalf of injured investors throughout the nation. The firm's extensive experience in securities litigation has contributed to the recovery of hundreds of millions of dollars for aggrieved investors. For more information about the firm, please go to

Contact Information

  • Contact:

    Jeffrey A. Berens, Esq.
    Dyer & Berens LLP
    303 E. 17th Ave., Ste. 300
    Denver, CO 80203
    Tel: (888) 300-3362 x302
    Email: Email Contact