Feeds

FalconStor settles with feds for $6m

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

The essential guide to IT transformation

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. ®

Boost IT visibility and business value

More from The Register

next story
Pay to play: The hidden cost of software defined everything
Enter credit card details if you want that system you bought to actually be useful
Shoot-em-up: Sony Online Entertainment hit by 'large scale DDoS attack'
Games disrupted as firm struggles to control network
HP busts out new ProLiant Gen9 servers
Think those are cool? Wait till you get a load of our racks
Silicon Valley jolted by magnitude 6.1 quake – its biggest in 25 years
Did the earth move for you at VMworld – oh, OK. It just did. A lot
VMware's high-wire balancing act: EVO might drag us ALL down
Get it right, EMC, or there'll be STORAGE CIVIL WAR. Mark my words
Forrester says it's time to give up on physical storage arrays
The physical/virtual storage tipping point may just have arrived
prev story

Whitepapers

Top 10 endpoint backup mistakes
Avoid the ten endpoint backup mistakes to ensure that your critical corporate data is protected and end user productivity is improved.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Backing up distributed data
Eliminating the redundant use of bandwidth and storage capacity and application consolidation in the modern data center.
The essential guide to IT transformation
ServiceNow discusses three IT transformations that can help CIOs automate IT services to transform IT and the enterprise
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.