NEW YORK, March 27, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed in the United States District Court for the District of New Jersey, on behalf of all persons who purchased or otherwise acquired the securities of InterCloud Systems, Inc. ("ICLD" or the "Company") (Nasdaq:ICLD) during the period between November 5, 2013 and March 17, 2014 (the "Class Period").
The complaint alleges that during the Class Period various articles were published strongly hyping InterCloud's stock. The complaint also alleges that the articles were written by, among others, John Mylant and "Kingmaker," who claimed to run a volatility trading group. Mr. Mylant and Kingmaker's positive InterCloud articles stated that they had not been paid by InterCloud. The complaint further alleges that as a result of the 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." The complaint also alleges that on December 13, 2013, InterCloud sold debentures with a face value of $11,625,000.
The complaint alleges that on March 13, 2014, an article on Seeking Alpha disclosed that John Mylant was a paid promoter who operated closely with the companies that hired him to publish promising articles while claiming that he was independent of the companies he endorsed. The complaint further alleges that on March 17, after trading hours, journalist Roddy Boyd asserted that a stock promotion firm, the DreamTeam Group, works with authors like Mr. Mylant to create press campaigns hyping the companies that hire it.
The complaint further alleges that as a result of this adverse information, on March 13 and 18, InterCloud's stock price fell, damaging investors.
If you wish to serve as lead plaintiff, you must move the Court no later than May 26, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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