A law office recently announced that it filed a securities class action lawsuit against a computing resource company after its shareholders alleged that it violated federal securities laws.
The Rosen Law Firm confirmed that the litigation was filed in the U.S. District Court for the District of New Jersey against InterCloud Systems, Inc. This includes all shareholders who purchased interests in the company during the class period between Nov. 5, 2013, and March 17, 2014.
Multiple articles were released by two people who claimed to be part of a trading group, and these pieces noted positive aspects of InterCloud Systems. The articles helped the stock price improve to $18.13 per share on Jan. 15, 2014. This was notably higher than the $2.55 per share on Nov. 14, 2013.
The company also sold approximately $11.6 million in debentures only days after a similar article was released in December. However, on March 13, 2014, an article from Seeking Alpha noted that one of the writers was paid to promote the company.
Shareholders who meet certain criteria may be eligible to become lead plaintiff in the case. As of now, there is no class certified, but all shareholders who want to apply for the lead plaintiff position need to complete the steps laid out by the court by May 26, 2014. This is not a mandatory action, and it is still an option for shareholders to remain part of the class without further action.
For any stockholders who have interest in learning more about the case, the law firm has members who are available to answer questions. Both Phillip Kim and Jonathan Horne can be reached by telephone or email. The law office's website also provides more information to those looking for details.
Separate investigation underway
Another law office is looking into the allegations against InterCloud Systems, and this action has the potential to also become a securities class action claim in the future.
Bronstein, Gewirtz and Grossman, LLC, noted it will examine many of the aforementioned allegations. When the latest information surfaced, the company saw two stock price drops. On March 13, the stock dipped by $1.19 per share, while it slid again by $1.28 per share on March 18.
This law office is also open to speaking with shareholders about these issues. Peretz Bronstein and Eitan Kimelman can be contacted by telephone or email.