Ashraf Eassa
Long/short equity, contrarian, independent research, tech

FalconStor's Up For Sale, But Are There Any Buyers?

FalconStor (NASDAQ:FALC) is a firm whose primary business is disk-based data protection. At first glance, things looked troubling: its founder and CEO ReiJane Huai was ousted (and shortly thereafter committed suicide) following accusations that the firm bribed executives at JP Morgan Chase (NYSE:JPM) with restricted stock shares and golf memberships in exchange for contracts (FalconStor admitted no wrongdoing, but paid $5.8M in a settlement). Add to that the firm's troubling sales and profitability trends, and you get a company that saw it in the best interests of its shareholders to hire Wells Fargo (NYSE:WFC) to help it explore "strategic alternatves". FalconStor is up for sale, but are there any buyers?

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