… And Levetown & Jenkins…

Levetown & Jenkins, LLP is conducting an investigation into breaches of fiduciary duties and violations of state law by the officers and directors of FalconStor Software, Inc.

FalconStor develops, manufactures, and sells network storage software solutions and provides services related to those software solutions in the United States and internationally. FalconStor is headquartered in Melville, New York, and was founded in 1989.

On September 29, 2010, FalconStor announced that its founder, ReiJane Huai, had resigned from his positions as Chairman of the Board of Directors, President, and Chief Executive Officer of FalconStor. Moreover, Mr. Huai’s resignation followed his disclosure of allegations concerning improper payments made in connection with a FalconStor contract. In response to the announcement, shares of FalconStor fell to $3.15 – a decline of more than 22% from the closing price of $4.06 on the previous day.