The New York State Supreme Court Appellate Division, Second
Department, issued a decision affirming the dismissal with
prejudice of a shareholder derivative complaint brought against
Paul, Weiss client FalconStor Software, Inc. Plaintiffs alleged
that a bribery scheme took place under the direction and watch of
FalconStor's board of directors, and that the directors breached
their fiduciary duties by approving certain stock option grants
that were used in the scheme.