NEW YORK, April 18, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against InterCloud Systems, Inc. ("InterCloud" or the "Company") (Nasdaq:ICLD) and certain of its officers. 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.
If you are a shareholder who purchased InterCloud securities during the Class Period, you have until May 26, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
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.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.