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Roaring Kitty Faces Securities Fraud Claims Over GameStop Social Media Posts

Jul 1, 2024

Roaring Kitty Faces Securities Fraud Claims Over GameStop Social Media Posts
Roaring Kitty Faces Securities Fraud Claims Over GameStop Social Media Posts
Roaring Kitty Faces Securities Fraud Claims Over GameStop Social Media Posts

Keith Gill, known as Roaring Kitty, faces a new class-action lawsuit alleging securities fraud related to his social media activity surrounding GameStop's stock. Filed on June 28 in the United States District Court for the Eastern District of New York, the lawsuit accuses Gill of orchestrating a "pump and dump" scheme through cryptic social media posts beginning May 13. The complaint claims Gill failed to disclose his trading activities adequately, allegedly misleading followers and causing price volatility in GameStop shares. Represented by law firm Pomerantz, plaintiff Martin Radev states he suffered losses after purchasing GameStop shares and call options influenced by Gill's posts. Despite the claims, legal experts, including former federal prosecutor Eric Rosen, believe the lawsuit may face significant challenges and could potentially be dismissed if Gill's defence effectively argues against the allegations of intentional fraud or misrepresentation in court.