San Diego, CA -- (ReleaseWire) -- 04/30/2014 -- An investor, who purchased shares of InterCloud Systems Inc (NASDAQ:ICLD), filed a lawsuit in the U.S. District Court for the District of New Jersey over alleged violations of Federal Securities Laws by InterCloud Systems Inc in connection with certain allegedly false and misleading statements made between November 5, 2013 and March 17, 2014.
If you purchased shares of InterCloud Systems Inc (NASDAQ:ICLD), you have certain options and for certain investors are short and strict deadlines running. Deadline: May 26, 2014. NASDAQ:ICLD investors should contact the Shareholders Foundation at firstname.lastname@example.org or call +1(858) 779 - 1554.
According to the complaint the plaintiff alleges on behalf of all persons or entities who purchased or otherwise acquired securities of InterCloud Systems Inc (NASDAQ:ICLD) between November 5, 2013 and March 17, 2014, that InterCloud Systems Inc and certain of its officers and directors violated Federal Securities Laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
More specifically, the plaintiff claims that between November 5, 2013 and March 17, 2014 various articles were published enthusiastically touting InterCloud’s stock and that those articles were written by, among others, John Mylant and “Kingmaker,” who stated that they had not been paid by InterCloud. and purported to run a volatility trading group. The plaintiff says that as a result of the articles, InterCloud Systems Inc’s stock price rose from $2.55 on November 14, 2013 to a peak of $18.13 on January 15, 2014, two days after a glowing article written by “Kingmaker.”
Then on March 13, 2014, an article disclosed that John Mylant was a paid promoter who worked closely with the companies that employed him to publish favorable articles while falsely stating that he was independent of the companies he promoted.
The plaintiff alleges that on March 17,2014, after trading hours, a journalist asserted that stock promotion firm, the DreamTeam Group, works with authors like Mr. Mylant to create misleading press campaigns touting the companies that hire it, and had been employed to tout InterCloud’s stock price.
Shares of InterCloud Systems Inc (NASDAQ:ICLD) declined from $18.13 per share in January 2014 to as low as $3.99 per share on April 24, 2014.
On April 28, 2014, InterCloud Systems Inc shares closed at $4.10 per share.
Those who purchased shares of InterCloud Systems Inc (NASDAQ:ICLD) have certain options and should contact the Shareholders Foundation.
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