Roaring Kitty Cleared as GameStop Fraud Lawsuit Withdrawn Within 72 Hours
Gill's Tweets continue to influence the market. | Credit: YouTube
- The class action lawsuit against Keith Gill, aka ‘Roaring Kitty’, was withdrawn three days after filing without a disclosed reason
- Keith Gill faced a lawsuit alleging securities fraud related to his social media activity.
- Gill’s online presence continues to impact the market as indicated by recent pet stock volatility.
Roaring Kitty Accused of Securities Fraud
Keith Gill, better known as Roaring Kitty, was recently facing accusations of securities fraud in a class-action lawsuit linked to GameStop.
The lawsuit claimed that his social media activities contributed to significant fluctuations in GameStop’s stock prices during May and June.
The legal action contended that Gill’s posts on various platforms played a pivotal role in the unusual volatility observed in the market during that period.
On June 28, a lawsuit was filed in the Eastern District of New York against Keith Gill, famously known as Roaring Kitty, for his role in the GameStop trading frenzy of 2021.
In May, Gill made a notable return to social media by posting GameStop-related memes on his X account for the first time in three years, an action the lawsuit characterizes as a re-engagement with GameStop securities. The filing highlights this activity as significant.
Subsequently, in early June, Gill revealed through a Reddit post that he held a substantial position in GameStop, consisting of 5 million shares and 120,000 call options with a strike price of $20. This disclosure triggered a sharp increase in GameStop’s stock value, with shares soaring over 70% in early premarket trading on June 3.
Keith Gill has turned his original $53k investment into over $220 million dollars by investing in the one company MSM keeps begging us to forget 🤔
byu/Hungry_Band9109 inSuperstonk
Lawsuit Alleging GameStop Stock Manipulation
The lawsuit claims that Gill attempted to inflate GameStop’s stock prices. Following these actions, E-Trade reportedly considered banning him from its platform due to concerns over stock manipulation.
On June 13, Gill disclosed the acquisition of an additional 4 million GameStop shares, valued at $262 million. The plaintiffs in the case assert that Gill engaged in a pump-and-dump scheme, which they allege led to financial losses for other investors.
The complaint states that Gill spread false and misleading information aimed at increasing the stock prices of GameStop. As a result, the plaintiffs are now seeking a trial.
GME YOLO update – June 13 2024
byu/DeepFuckingValue inSuperstonk
Former federal prosecutor Eric Rosen, expressed skepticism about the success of the lawsuit against Gill. In a blog post dated June 30, Rosen discussed the expectations surrounding Gill’s financial maneuvers, noting that no reasonable investor would anticipate Gill holding his options until their exact expiry date.
Rosen also critiqued the basis of the lawsuit, which hinges on the decision of investors to rely solely on the cryptic social media posts of someone using the moniker “Roaring Kitty.” He emphasized that proving fraud in court demands clear evidence of intentional deception, which, in his view, is absent in this case. This lack of substantial evidence, according to Rosen, significantly undermines the likelihood of the lawsuit’s success.
Sparking Volatility in Pet Care Stocks and Meme Coin Frenzy
Keith Gill is a financial analyst turned influential Reddit investor who played a pivotal role in the GameStop short squeeze of 2021. Gill argued that the video game retailer was undervalued and managed to spark a massive wave of interest among retail investors through his posts on Reddit’s r/wallstreetbets forum. His advocacy and insights contributed to a meteoric rise in GameStop’s stock price, which surged 1600% , dramatically impacting hedge funds that had positioned themselves against the stock.
Following these events, Gill was called to testify before Congress where he reiterated his position as a dedicated and enthusiastic investor who genuinely believed in the potential of GameStop.
Last week, Gill demonstrated his continued impact on niche areas of the stock market when the highly anticipated airdrop for the Ethereum layer-2 network, Blast, seemed to underperform expectations.
After a long hiatus, the well-known GameStop enthusiast made a sudden comeback to Twitter last Thursday. He posted an enigmatic image of a cartoon dog, without any accompanying text, marking his return to the platform.
Within just 15 minutes, the subtle cue from Roaring Kitty’s post—aptly described as a dog whistle—triggered significant surges in major pet care stocks. Chewy, Inc. skyrocketed by 33%, Petco ‘s stock (WOOF) climbed 14%, and PetMed Express (PETS) experienced a 7% increase.
These rapid jumps momentarily generated billions of dollars in market value. However, almost as quickly as they rose, these gains were wiped out, illustrating the volatile nature of the market influenced by such enigmatic social media activity.
GameStop Memecoin up 250% Today – Roaring Kitty’s Return Could be The Catalyst
