Ryan & Maniskas, LLP ( www.rmclasslaw.com/cases/falc) announces that a class action lawsuit has filed in United States District Court for the Eastern District of New York on behalf of purchasers of the common stock of FalconStor Software, Inc. ("FalconStor" or the "Company") (NASDAQ: FALC) between February 5, 2009 and September 29, 2010, inclusive (the "Class Period").

For more information regarding this class action suit, please contact Ryan & Maniskas, LLP (Richard A. Maniskas, Esquire) toll-free at (877) 316-3218 or by email at rmaniskas@rmclasslaw.com or visit: www.rmclasslaw.com/cases/falc.

FalconStor and certain of its Officers are charged with making a series of materially false and misleading statements related to the Company's business and operations in violation of the Securities Exchange Act of 1934. The complaint alleges, among other things, that FalconStor was making improper payments to secure a contract with at least one of the Company's customers; and as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about FalconStor and its prospects.

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." On this news, shares of the Company's stock fell $0.91 per share, or 22%, to close at $3.15 per share.

If you are a member of the class, you may, no later than November 30, 2010, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ryan & Maniskas, LLP or other counsel of your choice, to serve as your counsel in this action.

For more information about the case or to participate online, please visit: www.rmclasslaw.com/cases/falc, or contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218, or by e-mail at rmaniskas@rmclasslaw.com. For more information about class action cases in general or to learn more about Ryan & Maniskas, LLP, please visit our website: www.rmclasslaw.com.

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