Goldfarb Branham LLP is investigating shareholder claims against FalconStor Software (NASDAQ: FALC) due to the resignation of the company’s founder and CEO after allegations of improper payments. FalconStor Shareholders with concerns or information are encouraged to contact the firm at 877-583-2855 or hlindley@goldfarbbranham.com.

“When Founder and CEO ReiJane Huai announced his resignation, FalconStor shares declined more than 22% in one day,” securities lawyer Hamilton Lindley said. “He had earlier disclosed that certain improper payments were allegedly made in connection with the company’s contract with one customer.”

Goldfarb Branham LLP is investigating a derivative lawsuit against company officers and directors for allowing this to occur. Derivative lawsuits often lead to restored confidence in companies involved in financial scandal and a resulting increase in shareholder value. Concerned shareholders are urged to contact attorney Hamilton Lindley at 877-583-2855 or hlindley@goldfarbbranham.com.

Copyright Business Wire 2010