TechFlow reports that Keith Gill (Roaring Kitty), known for his 2021 GameStop short squeeze trading, is facing a class-action securities fraud lawsuit due to a series of social media posts that triggered extreme volatility in GME's stock price. The lawsuit was filed on June 28 in the U.S. Eastern District Court of New York, accusing Gill of failing to adequately disclose his options trading and allegedly engaging in a "pump-and-dump" scheme that misled investors.
Plaintiff Martin Radev claims he suffered losses due to Gill's actions. After Gill posted on May 13, GME’s stock surged 180%. On June 2, Gill disclosed on Reddit his substantial holdings in GME shares and options, further driving up the stock price. On June 13, Gill stated he had exercised all his options, profiting millions of dollars.
Former federal prosecutor Eric Rosen believes the lawsuit may be dismissed, as Gill was under no obligation to pre-disclose his trading intentions, and the content of his posts would be difficult to prove as intentionally misleading.
