Lawsuit Accuses Keith Gill, 'Roaring Kitty', of GameStop Stock Price Manipulation

Keith Gill, known as "Roaring Kitty," is facing a lawsuit for allegedly manipulating GameStop stock during the 2021 meme-stock frenzy. Gill's recent social media posts sparked a significant rise in GameStop's shares. The class action claims he aimed to profit at the expense of other investors, despite Gill's previous fame as a GameStop promoter.

The world of finance and investing has witnessed its fair share of controversies, but few have garnered as much attention as the recent allegations against Keith Gill, also known as "Roaring Kitty." The prominent investor, who gained fame for promoting GameStop (GME) stocks on social media platforms, is now facing a securities fraud lawsuit. According to a class action filed on June 14, 2021, Gill is accused of manipulating the stock market, resulting in substantial losses for other investors [1].

During the 2021 meme-stock frenzy, Gill's social media activities are said to have artificially inflated the price of GameStop stocks. On May 12, Gill posted a cryptic meme on the platform X, which was perceived as a positive signal for GameStop. Over the following days, the stock price surged dramatically, with gains vanishing by May 24 [1]. The plaintiffs argue that Gill raised the value of the stock using his social media influence before selling his shares, reaping millions of dollars in profits while other investors suffered losses.

The lawsuit alleges that Gill's actions amounted to a "pump-and-dump" tactic, a common form of securities fraud. The complaint emphasizes Gill's significant social media following as a crucial factor in his ability to manipulate the market. Previously, Gill had amassed a substantial amount of GameStop stock and call options, leading other investors to follow his lead [1].

In response to the allegations, Gill has denied any wrongdoing. He revealed his holdings on June 2, stating that he had 120,000 call options and 5 million shares. However, he sold the call options and increased his stock count to 9 million shares by June 13 [1]. The plaintiffs argue that this series of events was designed to manipulate the market and profit from other investors' losses.

The legal action seeks to hold Gill accountable for his alleged manipulation and the financial losses sustained by affected investors. The plaintiffs contend that Gill's actions were dishonest and meant to control the market for personal gain [1]. As the case unfolds, the implications for securities fraud and social media investing are sure to be significant.

References:
[1] "Roaring Kitty" Faces Lawsuit for Alleged GameStop Manipulation. Investors Hangout. June 14, 2021. https://investorshangout.com/gamestop-stock-manipulation-lawsuit-targets-keith-gill-570-/.