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 State Supreme Court Dismisses Complaint Against FalconStor
- Client News
- March 5, 2013
Practices
New York State Supreme Court Justice Emily Pines issued a decision dismissing, with prejudice, a shareholder derivative complaint brought against Paul, Weiss client FalconStor Software, Inc.
In June 2012, FalconStor entered into settlements with the Department of Justice and the SEC admitting that FalconStor employees bribed employees of JPMorgan Chase Bank, N.A., so that JPMorgan would purchase FalconStor products and services. Plaintiffs alleged that the 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 stock option grants that were used in the bribery scheme.
Justice Pines rejected plaintiffs' arguments that making a demand on FalconStor's board before filing their action would be futile, finding that plaintiffs had not pleaded particularized facts creating a reasonable doubt that the board was properly able to consider a demand.
Litigation partner James Brochin argued the motion before Justice Pines on February 28. The Paul, Weiss team also included litigation partner Daniel Kramer.