Defendant Name:
FalconStor Software, Inc.
Defendant Type:
Public Company
Document Reference:
2012-123
Document Details
Legal Case Name
SEC v. FalconStor Software, Inc.
Document Name
SEC Charges Long Island Software Company in Connection With Bribery Scheme
Document Date
27-Jun-2012
Document Format
Civil Proceeding
Case Number
12-cv-03200
Federal District Court
New York, Eastern District of New York
Allegation Type
Issuer Reporting and Disclosure
Document Summary
On June 27, 2012, the SEC announced that it charged that FalconStor Software, Inc. ("FalconStor"), a data storage company, misled investors about bribes it paid to obtain business with a subsidiary of J.P. Morgan Chase & Co. According to the SEC's complaint filed in U.S. District Court for the Eastern District of New York, FalconStor made materially misleading statements in earnings releases filed with the SEC in April 2008 and February 2009. The complaint charges FalconStor with violating the books-and-records and internal controls provisions of U.S. securities laws, and violations of the offering registration provisions and certain anti-fraud provisions. In order to settle the SEC's civil lawsuit, FalconStor admitted to the bribery scheme and agreed to pay a $2.9 million penalty and to institute enhanced compliance measures. The settlement is subject to court approval. Further, FalconStor will pay $2.9 million as part of a deferred prosecution agreement with the U.S. Attorney's Office for the East District of New York, which filed a related criminal case.
Disgorgement & Penalty Information
Resolutions
Other Compliance Related Undertaking
Monetary Penalties:
Civil Penalty
Individual:
$2,900,000.00
Shared: