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CORRECTING and REPLACING The Shuman Law Firm Announces the Filing of a Class Action Lawsuit against FalconStor Software, Inc.

^{Published on 2010-11-01 15:20:36 - Market Wire}
 

BOULDER, Colo.--([ BUSINESS WIRE ])--First graph, first sentence of release dated October 8, 2010, should read: [ The Shuman Law Firm ] announces that a class action lawsuit has been filed on behalf of purchasers of FalconStor Software, Inc. ("FalconStor" or the "Company") (NASDAQ: FALC) common stock during the period between February 5, 2009 and September 29, 2010, inclusive (the aClass Perioda). (sted September 29, 2009).

The corrected release reads:

THE SHUMAN LAW FIRM ANNOUNCES THE FILING OF A CLASS ACTION LAWSUIT AGAINST FALCONSTOR SOFTWARE, INC.

[ The Shuman Law Firm ] announces that a class action lawsuit has been filed on behalf of purchasers of FalconStor Software, Inc. ("FalconStor" or the "Company") (NASDAQ: FALC) common stock during the period between February 5, 2009 and September 29, 2010, inclusive (the aClass Perioda).

If you wish to discuss this action or have any questions concerning this notice or your rights and interests with respect to this matter, please contact Kip B. Shuman or Rusty E. Glenn toll free at (866) 974-8626 or email Mr. Shuman at [ kip@shumanlawfirm.com ] or Mr. Glenn at [ rusty@shumanlawfirm.com ].

The complaint charges FalconStor and certain of its officers and directors with violations of federal securities laws. Specifically, the Complaint alleges that 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 FalconStor 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 FalconStor and its prospects.

On September 29, 2010, FalconStor announced that, effective immediately, the Companya™s founder, ReiJane Huai, had resigned from his positions as Chairman of the Board of Directors, President, and Chief Executive Officer of FalconStor. Mr. Huai tendered his resignation following the 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 purchased FalconStor common stock during the Class Period, you may request that the Court appoint you as lead plaintiff of the class no later than November 30, 2010. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members.

The Shuman Law Firm represents investors throughout the nation, concentrating its practice in securities class actions and shareholder derivative actions.