Last Friday, US stock market retail investor Keith Gill, also known by his nickname "Roaring Kitty", was accused of participating in the "pump and dump" of GameStop's stocks. However, for some reason, the lawsuit was withdrawn on Monday.
On July 2, Cailian Press (Editor Liu Rui) reported that the "leading brother" who responded to calls among the retail investors in the U.S. stock market was actually sued by them!
Last Friday, Eastern Time, Keith Gill, an American stock market retail investor and the "leading brother" of the retail investors, and known by his online nickname "Roaring Kitty", was accused of participating in the "pump and dump" of GameStop Corporation's stock.
However, this lawsuit was inexplicably withdrawn on Monday of this week.
The "leading brother" of the American stock market retail investors was sued.
Martin Radev, a shareholder of GameStop, filed a collective lawsuit in the U.S. Federal Court in Brooklyn, New York on Friday, accusing Keith Gill of securities fraud, claiming that he tried to manipulate the stock for profit.
As one of the leading figures in the 2021 war between American stock market retail investors and Wall Street, Gill has a wide range of influence among the retail investors. Gill already has more than 1 million fans on his YouTube channel and Reddit page. In May of this year, he appeared again and started posting about GameStop on the social media platform X.
The lawsuit claimed that before Gill started posting information about GameStop in May, he had already obtained 120,000 call options of the company. The stock price of the company had been around $17 before Gill started to issue announcements, but it soared to $48.75 on May 14.
On June 2, he revealed that he owned 5 million shares of GameStop stock and 120,000 call options expiring on June 21. This once again caused the stock price to soar, and GameStop's stock price rose from $23.14 the previous day to $28 on June 3, reaching as high as $40.5 at one point during the day.
GameStop's stock price experienced a large fluctuation in June.
As of June 13, Gill's holdings of GameStop stock had surpassed 9 million shares, and there were no outstanding call options.
Radev claimed in the lawsuit that Gill "secretly sold and/or exercised all of his 120,000 GameStop call options to make huge profits."
Afterwards, the stock price of GameStop declined somewhat, but it was still higher than before Gill made his post. On Monday afternoon, Eastern Time, the stock closed at around $23.
He also stated in the lawsuit: "As a result of the defendant's wrongful conduct and negligence, and the sharp decline in the market value of the company's securities, the plaintiffs and other class members suffered significant losses and harm."
In a document submitted to the court late Monday afternoon Eastern Time, Radev stated that he voluntarily dismissed the lawsuit.
It is not clear why Radev withdrew the lawsuit, and his lawyer did not immediately respond to a request for comment. However, he can still file another lawsuit later.
Gill's influence is still spreading. On Monday of this week, Eastern Time, after Gill disclosed that he held a passive stake of 6.6% in Chewy Inc., an online pet food retailer, the company's stock price rose by 10%.
Although Gill has once again been "calling the wind and summoning the rain" on social media for the past two months, GameStop's recent rise has not been as remarkable as in 2021. The company surged more than 1,700% in January 2021, and the rise in its stock price once caused the shocking "war between American stock market retail investors and Wall Street": belligerent retail investors confronted experienced hedge funds who heavily shorted this company.
However, Gill's influence is still spreading. Eastern Time on Monday of this week, after revealing that he held a passive stake of 6.6% in Chewy Inc., an online pet food retailer, the company's stock price rose by 10%.
A few days before submitting the application to the U.S. Securities and Exchange Commission, Gill posted a cartoon picture of a dog, but made no specific comments. Last Thursday, Eastern Time, this picture of the little dog briefly pushed the stock price of this pet food retailer to a one-year high.
