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Paul, Weiss is widely recognized as having one of the nation’s preeminent securities litigation and regulatory practices. For two decades, our lawyers have guided global corporations and financial institutions through a series of “bet-the-company” securities-related crises, consistently reducing or eliminating their most damaging claims and negotiating favorable resolutions.
New York Appeals Court Affirms Dismissal of Complaint Against FalconStor
- Client News
- March 17, 2015
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. On March 5, 2013, New York State
Supreme Court Justice Emily Pines accepted the defendants' argument
that demand on FalconStor's board before filing the action was not
excused and dismissed the plaintiffs' complaint with prejudice. On
March 17, 2015, a panel of the New York Appellate Division, Second
Department unanimously affirmed Justice Pines's decision, finding
that the plaintiffs' allegations were insufficient to create a
reasonable doubt that FalconStor's board was properly able to
consider a demand.
The Paul, Weiss team included litigation partners Daniel Kramer and James Brochin (who argued the appeal).