SAN DIEGO and SHREWSBURY, N.J., May 2, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of InterCloud Systems, Inc. (NASDAQ: ICLD) has filed a federal securities fraud class action complaint in the U.S. District Court for the District of New Jersey. The complaint alleges that the company and certain of its officers and directors and violated the federal securities laws between November 5, 2013 and March 17, 2014 (the "Class Period"). InterCloud Systems provides single-source end-to-end information technology solutions to the telecommunications service provider and corporate enterprise markets.
InterCloud Systems Accused of Engaging in a Misleading Brand Awareness Campaign
According to the complaint, shares of InterCloud fell multiple times beginning with an initial decline of $1.19, or more than 9%, to close at $11.91 on March 13, 2014, following the publication of an article claiming that InterCloud Systems engaged in a misleading brand awareness campaign. Specifically, the complaint alleges that an investor relations firm, the DreamTeamGroup, was hired by InterCloud to write favorable articles touting the company and promoting its stock. The complaint charges that InterCloud investors were misled because the authors of the articles falsely stated that they had not received compensation from InterCloud. On March 18, 2014, InterCloud's shares fell an additional $1.28, or 10.8%, to close at $10.59, following the publication of an additional article claiming that the DreamTeamGroup articles touting InterCloud appeared to have been paid promotions.
The complaint further alleges that because of this misleading campaign, InterCloud's shares traded at artificially high prices because throughout the class period.