InterCloud Systems (ICLD) Stock Continues To Decline In Aftermarket Trading

NEW YORK (TheStreet) -- Intercloud Systems Inc.  (ICLD) shares were down 2.4% to $7.20 in aftermarket trading Wednesday, following a precipitous drop for the telecom infrastructure company throughout the day.

The stock closed down 7.5% during the day after three separate law firms sent out press releases stating that they were filing lawsuits against the company on behalf of shareholders. Levi & Korinsky, LLP's lawsuit alleges that InterCloud "made materially false and misleading statements and/or omitted materially adverse facts regarding the company's business, operations, and prospects."

According to the complaints, InterCloud hired a promotional firm, The Dream Team Group (DTG), to promote the stock after the company's IPO. "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," law firm Rigrodsky & Long, PA said.

Must Read: 
Warren Buffett's 10 Favorite Stocks

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

 

More from Markets

North Korea, Apple, GPDR and Gap - 5 Things You Must Know

North Korea, Apple, GPDR and Gap - 5 Things You Must Know

Oil Falls Sharply After Saudi Arabia, Russia Suggest Production Cut Easing

Oil Falls Sharply After Saudi Arabia, Russia Suggest Production Cut Easing

Netflix Ready to Surpass Disney as America's Most Valuable Media Company

Netflix Ready to Surpass Disney as America's Most Valuable Media Company

Global Stocks Hold Gains as North Korea Response on Talks Soothes Nerves

Global Stocks Hold Gains as North Korea Response on Talks Soothes Nerves

Italian Bonds Slump as Government Mulls Anti-Euro Finance Minister

Italian Bonds Slump as Government Mulls Anti-Euro Finance Minister