Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against InterCloud Systems, Inc.

Rigrodsky & Long, P.A.:
  • Do you, or did you, own shares of InterCloud Systems, Inc. (NASDAQ CM: ICLD)?
  • Did you purchase your shares between November 5, 2013 and March 17, 2014?
  • Did you lose money in your investment in InterCloud Systems?
  • Do you want to discuss your rights?

Rigrodsky & Long, P.A., including former Special Assistant United States Attorney, Timothy J. MacFall, announces that a complaint has been filed in the United States District Court for the District of New Jersey on behalf of all persons or entities that purchased the common stock of InterCloud Systems, Inc. (“InterCloud” or the “Company”) (NASDAQ CM: ICLD) between November 5, 2013 and March 17, 2014 (the “Class Period”), alleging violations of the Securities Exchange Act of 1934 against the Company and certain of its officers (the “Complaint”).

If you purchased shares of InterCloud during the Class Period and wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of Rigrodsky & Long, P.A., 2 Righter Parkway, Suite 120, Wilmington, DE 19803 at (888) 969-4242; by e-mail to info@rl-legal.com; or at: http://www.rigrodskylong.com/investigations/intercloud-systems-inc-icld.

InterCloud is a global single-source provider of value-added services for both corporate enterprises and service providers. The Complaint alleges that throughout the Class Period, defendants made materially false and misleading statements, and omitted materially adverse facts, about the Company’s business, operations and prospects. Specifically, the Complaint alleges that the defendants concealed from the investing public that articles touting InterCloud’s stock were being disseminated by paid promoters for the Company, a violation of Section 17(b) of the Securities Act of 1933. As a result of defendants’ false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.

According to the Complaint, InterCloud retained stock promotional firm The DreamTeam Group (“DTG”) to promote the Company’s stock after its initial public offering. DTG, along with its affiliates and other third parties, published articles touting the Company’s stock without disclosing that they were paid promoters for the Company, a violation of Section 17(b) of the Securities Act of 1933.

On March 13, 2014, an article exposing the misconduct of DTG was published on stock market analysis website SeekingAlpha.com. As a result, shares in InterCloud fell over 9% on that same day, closing at $11.91 per share on heavy trading volume. An article published on March 17, 2014 by journalist Roddy Boyd further detailed the promotional fraud being perpetrated by InterCloud. Shares of InterCloud fell almost 11% after the release of the Boyd article, closing at $10.59 per share on March 18, 2014.

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. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the firm, with offices in Wilmington, Delaware and Garden City, New York, regularly litigates securities class, derivative and direct actions, shareholder rights litigation and corporate governance litigation, including claims for breach of fiduciary duty and proxy violations in the Delaware Court of Chancery and in state and federal courts throughout the United States.

Attorney advertising. Prior results do not guarantee a similar outcome.

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