Keith Gill, also known as “Roaring Kitty,” is facing allegations of securities fraud in a class action lawsuit related to GameStop. It is claimed that his social media posts caused fluctuations in the price of GameStop shares from May to June.
The lawsuit was filed on June 28 in the Eastern District of New York and focuses on Gill, who gained prominence for his role in the short squeeze of GameStop shares in 2021. In May, Gill resumed posting memes on his X (Twitter) account for the first time in three years, suggesting renewed interest in GameStop shares.
In early June, Gill revealed on Reddit that he had acquired a significant stake in GameStop, amounting to 5 million shares and 120,000 call options with a $20 strike price. This 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.
According to court documents, Roaring Kitty engaged in securities fraud by allegedly failing to properly disclose the purchase and sale of GameStop call options, which purportedly misled his followers and led to losses for some investors.
Represented by the law firm “Pomerantz,” plaintiff Martin Radev claimed to have been affected by the alleged “pump and dump” scheme after purchasing a total of 25 GME shares and three call options in mid-May.