Keith Gill, also known as “Roaring Kitty,” is facing charges of securities fraud in a class action lawsuit related to GameStop. It is alleged that his social media posts caused fluctuations in GameStop’s stock prices from May to June. The lawsuit was filed on June 28 in the Eastern District of New York and focuses on Gill, who gained fame for his role in the GameStop short squeeze in 2021. In May, Gill resumed posting memes on his X (Twitter) account for the first time in three years, indicating renewed interest in GameStop stocks.
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After revealing on Reddit in early June that he had acquired a significant stake in GameStop, equivalent to 5 million shares and 120,000 call options with a $20 strike price, Gill’s announcement led to a more than 70% surge in the stock in pre-market trading on June 3. On June 13, he disclosed an additional purchase of 4 million GME shares worth $262 million. Court documents allege that Roaring Kitty engaged in securities fraud by failing to properly disclose his purchases and sales of GameStop call options, misleading his followers and causing losses for some investors. Represented by the law firm “Pomerantz,” plaintiff Martin Radev claims to have been harmed by the alleged “pump and dump” scheme after buying a total of 25 GME shares and three call options in mid-May.
