NEW YORK, July 1 (Reuters) – Investors in GameStop (GME.N)
, opens new tab have for now withdrawn their lawsuit accusing Keith Gill, who is known as “Roaring Kitty” and helped spur the meme stock mania of 2021, of defrauding them through a “pump-and-dump” scheme for the videogame retailer.A proposed class action accusing Gill of securities fraud was filed on Friday in the Brooklyn, New York, federal court, but voluntarily withdrawn on Monday without explanation. The lawsuit can be refiled, opens new tab, according to the filing.Lawyers at the Pomerantz law firm, which represents the investors, did not immediately respond to requests for comment.Investors led by Martin Radev, who lives in the Las Vegas area, said Gill manipulated GameStop securities between May 13 and June 13 by quietly accumulating large quantities of stock and call options, then dumping some holdings after emerging from a three-year social media hiatus.They said Gill’s activities caused GameStop’s share price to gyrate wildly, generating “millions of dollars” in profit for him at their expense.“Defendant still enjoys celebrity status and commands a following of millions through his social media accounts,” the complaint said. “Accordingly, Defendant was well aware of his ability to manipulate the market for GameStop securities, as well as the benefits he could reap.”Gill did not immediately respond to requests for comment on Monday.On May 12, he posted a cryptic meme on the social media platform X that was widely seen as a bullish signal for GameStop, whose stock he cheerleaded in 2021.GameStop’s share price more than tripled over the next two days, then gave back nearly all the gains by May 24.On June 2, Gill revealed that he owned 5 million GameStop shares and 120,000 call options, and on June 13 revealed he had shed the call options but owned 9 million GameStop shares.Investors said the truth about Gill’s investing became known on June 3 when the Wall Street Journal wrote about the timing of his options trades and said the online brokerage E*Trade (MS.N), opens new tab considered kicking him off its platform.The meme stock mania was fueled in part by investors stuck at home during the pandemic, and led to a “short squeeze” that caused losses for hedge funds betting stock prices would fall.On Monday, trading in Chewy (CHWY.N), opens new tab shares became volatile after Gill revealed a 6.6% stake in the pet products retailer.
Source: ‘Roaring Kitty’ lawsuit over GameStop is withdrawn for now | Reuters
So the investors starting the sueball were manipulating the stock by repeatedly shorting it, also with stocks that did not exist. Roaring Kitty showed this up a few years ago with the result that people started buying GME and raising the price. The shorters did not like this, as it cost them loads of money and they had to roll over their shorts. They are still clinging on to their shorts (at huge costs) and a bit ago Roaring Kitty broke his silence and posted a picture. That led to a spike in GME, probably at a time where the shorters needed to re-roll their shorts, which is why they are pissed.
Robin Edgar
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