Keith Gill, the day trader and social media personality better known as Roaring Kitty, is at the center of a class-action lawsuit filed on June 28 in New York, accused of securities fraud in connection with the erratic movements of GameStop’s stock prices.
The lawsuit alleges that Gill’s online posts influenced the stock’s significant price changes, particularly between May and June, and claims he orchestrated a “pump and dump” scheme.
The complaint details how Gill’s return to social media after a two-year hiatus, characterized by enigmatic messages, coincided with a sharp rise in GameStop’s share price.
Investors in the class-action suit claim they were misled by Gill’s failure to reveal his intentions to sell his GameStop options, which they say led to financial losses.
The suit points to a major transaction in mid-June, when Gill exercised all his options, reaping substantial profits and purchasing additional GameStop shares.