Feeds

FalconStor settles with feds for $6m

We'll be good boys from now on. Extra good for 18 months

Choosing a cloud hosting partner with confidence

FalconStor has settled a two lawsuits regarding alleged improper customer payments by coughing up $5.8 million and signing up to a deferred prosecution agreement.

There were two lawsuits: one from the SEC and the other from the US Attorney's Office for the Eastern District of New York (USAO). Each suit will see falconStor pay out $2.9 million. FalconStor has agreed settlements with both groups of feds. The settlement with the USAO has a deferred prosecution agreement aspect, under which the USAO can prosecute FalconStor within the next 18 months if it doesn't satisfy its [unspecified] obligations. At the end of that period the prosecution threat is lifted.

After the improper payments were discovered, FalconStor CEO, founder and guiding light, ReiJane Huai, was forced out and later died in hospital after apparently shooting himself. It was a tragic end to what had been a major success story.

Current FalconStor CEO Jim McNiel said he was pleased, you betcha, and the company has strengthened its compliance culture. Now, with this thing settled, it can move on to restore profitability. In its last quarter revenues were $19.4 million and there was a loss of $2.4 million. ®

Beginner's guide to SSL certificates

More from The Register

next story
Azure TITSUP caused by INFINITE LOOP
Fat fingered geo-block kept Aussies in the dark
NASA launches new climate model at SC14
75 days of supercomputing later ...
Yahoo! blames! MONSTER! email! OUTAGE! on! CUT! CABLE! bungle!
Weekend woe for BT as telco struggles to restore service
You think the CLOUD's insecure? It's BETTER than UK.GOV's DATA CENTRES
We don't even know where some of them ARE – Maude
DEATH by COMMENTS: WordPress XSS vuln is BIGGEST for YEARS
Trio of XSS turns attackers into admins
Cloud unicorns are extinct so DiData cloud mess was YOUR fault
Applications need to be built to handle TITSUP incidents
BOFH: WHERE did this 'fax-enabled' printer UPGRADE come from?
Don't worry about that cable, it's part of the config
Astro-boffins start opening universe simulation data
Got a supercomputer? Want to simulate a universe? Here you go
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
How to determine if cloud backup is right for your servers
Two key factors, technical feasibility and TCO economics, that backup and IT operations managers should consider when assessing cloud backup.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
The Heartbleed Bug: how to protect your business with Symantec
What happens when the next Heartbleed (or worse) comes along, and what can you do to weather another chapter in an all-too-familiar string of debilitating attacks?