NEW YORK (TheStreet) -- Intercloud Systems (ICLD) shares are falling, down -7.6% to $4.66 in trading on Tuesday.
The decrease continued following last week's announcement of a class action lawsuit against the telecom infrastructure services provider.
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The lawsuit revolves around favorable articles written by John Mylant, CEO of Options Weekly.org, and an individual referred to as "Kingmaker" that helped drive the price of the stock up.
According to a Seeking Alpha article, John Mylant is a paid promoter who works closely with companies who pay him to write favorable articles about them. The article further alleges that Mylant was paid by Intercloud for positive press coverage.
"The complaint further alleges that on March 13, 2014, an article on Seeking Alpha 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," said Pomerantz Law Firm which filed suit on Friday.
TheStreet Ratings team rates INTERCLOUD SYSTEMS INC as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate INTERCLOUD SYSTEMS INC (ICLD) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and generally disappointing historical performance in the stock itself."