By midday, shares had climbed 25.6% to $8.29. Trading volume of 1.3 million was more than double its three-month daily average.
The business tech support provider said paid promotions allegations leveled against the it were unfounded. A week ago, The Rosen Law Firm said it was investigating potential securities fraud claims resulting from allegations InterCloud had paid outsiders to promote the stock through false articles. The news caused shares to plummet nearly 30% on Friday, March 21.
InterCloud said in response it had hired former senior federal prosecutor with the SEC disvision of enforcement to determine whether there is any truth to the allegations.
"As a result of this investigation, the company is now in a position to state that these allegations are wholly without merit," the company said in a statement.
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