FX168 Financial News (North America) — Keith Gill, an investor who claims to be a “roaring kitten,” has been sued by investors for allegedly manipulating GameStop (GME.N) shares. These investors claim to have suffered losses at video game retailers through his “boosting shipments” program. # “Retail Group Stock” is making a comeback# #2024宏观展望 #
The proposed class-action lawsuit alleging securities fraud by Gill was filed in federal court in Brooklyn, New York last Friday.
Investors such as Las Vegas resident Martin Radev claim that Gill manipulated GameStop Securities by quietly accumulating a large number of stocks and subscription options between May 13 and June 13, 2021, then resurfacing after a three-year social media break and then selling off some of its holdings.
They claim that Gill's activity caused GameStop's share price to fluctuate drastically, allowing him to profit “millions of dollars” from their losses.
“The defendant still enjoys celebrity status and has millions of followers through his social media accounts,” the indictment said. “As a result, the defendant was well aware of his ability to manipulate the GameStop securities market and the benefits he may obtain.”
Gill did not immediately respond to requests for comment.
He posted a mysterious plot on social media platform X on May 12, which is widely regarded as a bullish sign for GameStop. He cheered for GameStop's stock in 2021.
GameStop's stock price more than tripled over the next two days, but by May 24, it had almost completely recovered.
On June 2, Gill revealed that it owns 5 million GameStop shares and 120,000 subscription options. On June 13, it was revealed that he had sold the subscription options but still held 9 million GameStop shares.
Investors claim that the truth about Gill's investment was revealed on June 3. At the time, the Wall Street Journal reported on the timing of his options trading and claimed that online brokerage firm E*Trade (MS.N) was considering kicking it off the platform.
This wave of stock boom was partly driven by investors stranded at home during the pandemic, leading to losses to hedge funds that bet that stock prices would fall.
On Monday, Gill's stock trading became volatile after disclosing a 6.6% stake in pet product retailer Chewy (CHWY.N).
Case number is Radev v. Gill, U.S. District Court for the Eastern District of New York, Case No. 24-04608.