| Company: | InterCloud Systems, Inc.( |
| Ticker Symbol: | ICLD |
| Class Period: | Nov-5-13 to Mar-17-14 |
| Date Filed: | May-2-14 |
| Lead Plaintiff Deadline: | Jul-1-14 |
| Court: | District of New Jersey |
| Allegations: | |
The class action, filed in United States District Court, District of New Jersey, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired InterCloud securities between November 5, 2013 and March 17, 2014, both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
InterCloud provides a single-source end-to end IT and telecom solutions to the service provider and corporate enterprise markets through cloud platforms and professional services in the United States.
The Complaint alleges that throughout the Class Period, various articles were published enthusiastically touting InterCloud's stock. The articles were written by, among others, John Mylant and an individual referred to as "Kingmaker", who purported to run a volatility trading group. Mr. Mylant and Kingmaker's favorable InterCloud articles stated that they had not been paid by InterCloud to publish the favorable articles. InterCloud'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". On December 13, 2013, InterCloud sold debentures with a face value of $11,625,000.
The complaint further alleges that on March 13, 2014, an article on Seeking Alpha 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. And on March 17, after trading hours, journalist Roddy Boyd asserted that notorious 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.
On March 13, 2014, an article published on the Seeking Alpha website, cited emails sent by John Mylant, a professional Options trader, which disclosed that 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. One of the Company's Mylant was allegedly employed to promote was Intercloud.
On this news, shares of InterCloud fell $1.19 to $11.91, or more than 9.08%, on unusually heavy trading volume, on March 13, 2014.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
