mCloud

Kurta Law is investigating brokers who recommended mCloud Technologies. Following de-listing from the stock exchange, shares of mCloud are currently worthless, and our attorneys have reason to believe that investors may not have understood the risky and speculative nature of this investment. If you lost money and would like to speak with an investment fraud lawyer, call (877) 600-0098 or email info@kurtalawfirm.com.

mCloud Share Price: What Happened?

In September 2023, NASDAQ announced that mCloud would be delisted from the exchange. The stock traded for less than $1 per share for 30 consecutive business days, in violation of Listing Rule 5550(a)(2).

Brokers who recommended shares of mCloud should have made sure investors knew that they could lose their principal investment. Speculative investments are only suitable for investors who both understand the risks and can afford a total loss.

Regulation Best Interest and FINRA Rule 2111

The Financial Industry Regulatory Authority is the regulatory body that oversees brokerage firms and their representatives. FINRA Rule 2111 requires brokers to recommend investments that suit their clients’ risk tolerances. Brokers must also consider factors like the investor’s age and investing experience. Regulation Best Interest expands on the requirements of FINRA Rule 2111. Brokerage firms must perform due diligence before approving a product, and exercise care and skill when making recommendations to clients.

What is mClould Technologies Corp?

mCloud Technologies Corp. advertises that it will help companies in the energy sector to optimize the performance and sustainability of assets like wind turbines, heat exchanges, and HVACs. The “Investor Relations” section of mCloud states: “At mCloud we are creating a more efficient future through the use of AI and analytics. By tapping into the power of data, we are curbing energy waste, maximizing power production, and getting the most out of critical energy infrastructure.” 

It is not clear how AI will help mCloud technologies accomplish this goal. Companies in emerging technology sectors often produce a white paper to explain how their technology works, but mCloud does not appear to have published any such report.

Can mCloud Investors Recover Losses?

A press release in August 2023 announced that a Special Committee had approved the sale of certain mCloud assets: One to focus on the AI and sustainable infrastructure angle and another to run its wholly owned subsidiary, NGRAIN. NGRAIN is an aerospace and defense technology company. Although the committee approved the sale, there is no guarantee mCloud will find a buyer.

Kurta Law Can Help

If you worked with a FINRA-registered broker, a securities attorney may be able to help you recover mCloud losses. Securities attorneys are experts on FINRA arbitration. Typically, brokerage firms include pre-dispute arbitration clauses in their contracts. FINRA arbitration is designed to be quicker and cheaper than civil litigation, and the proceedings are not a matter of public record. Securities attorneys can guide you through the process and make the necessary filings for statements of claim and discovery motions.

Contact us today for a free case evaluation. Our attorneys do not collect a fee unless we win your case. (877) 600-0098 or info@kurtalawfirm.com.