The Shareholders Foundation announces that an investigation on behalf of current long-term investors in shares of InterCloud Systems Inc (NASDAQ:ICLD) was launched concerning potential breaches of fiduciary duties by certain directors and officers of InterCloud Systems Inc.
Investors who are current long term investors in InterCloud Systems Inc (NASDAQ:ICLD) shares, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 – 1554.
The investigation by a law firm for current long term investors in InterCloud Systems Inc (NASDAQ:ICLD) stocks follows a lawsuit filed recently against InterCloud Systems Inc over alleged securities laws violations. The investigation on behalf of current long term investors in NASDAQ:ICLD stocks, concerns whether certain InterCloud Systems officers and directors are liable in connection with the allegations made in that lawsuit.
According to that complaint filed in the U.S. District Court for the District of New Jersey the plaintiff alleges that InterCloud Systems Inc 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 declined from over $18 per share in January 2014 to as low as $3.10 per share on May 12, 2014.
On June 10, 2014, NASDAQ:ICLD shares closed at $6.30 per share.
Those who purchased shares of InterCloud Systems Inc have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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