The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that a class action lawsuit has been brought on behalf of purchasers of the common stock of FalconStor Software, Inc. (“FalconStor”) (Nasdaq: FALC) between February 5, 2009 and September 29, 2010, inclusive (the “Class Period”). If you purchased FalconStor common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than November 30, 2010. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in this action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in this action. FalconStor shareholders who wish to learn more about this action and how to seek appointment as lead plaintiff may visit Lieff Cabraser’s website at http://www.lieffcabraser.com/cases.php?CaseID=353 or contact attorney Sharon Lee toll free at (800) 541-7358. Background on FalconStor Securities Class Litigation The action, pending in the United States District Court for the Eastern District of New York, was brought against FalconStor and certain of its officers and directors for violations of the Securities Exchange Act of 1934. FalconStor, headquartered in Melville, New York, develops, manufactures, and sells network storage software solutions as well as provides related maintenance, implementation, and engineering services. The complaint in the above-mentioned action alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company’s business and its prospects. Specifically, defendants failed to disclose that the Company was experiencing weak demand for its products and services and that it was making improper payments to secure a contract with at least one customer. On September 29, 2010, FalconStor issued a press release announcing that its Chairman, Chief Executive Officer, and President, defendant 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 response to this news, the price of FaclsonStor common stock fell $0.91 per share, or 22 percent, to close at $3.15 per share, on unusually high trading volume.
About Lieff CabraserLieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last eight consecutive years. For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.