FalconStor Agrees To Pay $5 Mln To Settle Class Action Lawsuit - Quick Facts - InvestingChannel

FalconStor Agrees To Pay $5 Mln To Settle Class Action Lawsuit – Quick Facts

FalconStor Software Inc. (FALC: Quote) announced that it had reached a settlement in principle of the class action lawsuit pending against the company.

In accordance with Memorandum of Understanding, FalconStor has agreed to pay $5 million to settle the action. This amount includes damages, plaintiffs’ attorneys’ fees, and costs of administration of the settlement. The company expects to pay this settlement with a combination of cash on hand and insurance proceeds.

Under the Memorandum of Understanding, a stipulation of settlement and a joint motion for preliminary approval of the settlement will be submitted to the court for its approval no later than March 11, 2013. Final settlement of the class action lawsuit is subject to certain conditions and to approval by the court.

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by RTT Staff Writer

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