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MTR OF FALCONSTOR SOFTWARE

2555-2011.

39 Misc.3d 916 (2013)

966 N.Y.S.2d 642

2013 NY Slip Op 23061

In the Matter of FALCONSTOR SOFTWARE, INC., Derivative Litigation.

Supreme Court, Suffolk County.

March 5, 2013.

Attorney(s) appearing for the Case

Paul Weiss Rifkind Wharton & Garrison LLP, New York City ( Daniel J. Kramer and James L. Brochin of counsel), for Wayne Lam and others, defendants. Cravath, Swaine & Moore LLP, New York City ( Daniel Slifkin of counsel), for ReiJane Huai, defendant. Harwood Feffer LLP, New York City ( Robert Harwood and Daniella Quitt of counsel), Burkhart, Wexler & Hirschberg, LLP, Garden City ( Martin P. Unger of counsel), The Weisler Law Firm, P.C., Berwyn, Pennsylvania ( Robert B. Weisler , Brett D. Steckler and Jeffrey J. Ciarlano of counsel), and Federman & Sherwood, Oklahoma City, Oklahoma ( William B. Federman and Sara E. Collier of counsel), for plaintiffs.

OPINION OF THE COURT

EMILY PINES, J.

Plaintiffs, two shareholders of the nominal defendant, FalconStor Software, Inc. (FalconStor or the company), commenced this shareholders' derivative action, asserting that under the direction and watch of the company's board of directors, several of its employees engaged in an unlawful scheme to bribe JP Morgan Chase Bank, N.A. (JP Morgan) so that it would purchase FalconStor's data protection products. Plaintiffs set...

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