FalconStor Software Inc. (FALC) bled the most in the R2K Index on Wendesday, nosediving as much as 34 percent to $2.60 and narrowly missing a 52-week low. The Melville, New York-based provider of disk-based data protectors said its chief executive and board chairman ReiJane Huai suddenly resigned from both positions after disclosing that certain improper payments were allegedly made in connection with the co.’s contract with one customer.
FalconStor, which has appointed Eli Oxenhorn as non-executive chairman and James McNiel as interim chief executive, said it has been in full cooperation with law enforcement with respect to the ongoing investigation.
FALC shed 20.91 percent, or 85 cents, to $3.21 in recent action. FalconStor shares have traded between $2.56 and $5.00 over the last 52 weeks.
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