According to TechFlow, Keith Gill (Roaring Kitty), who is famous for short-term trading in GameStop in 2021, is facing a securities fraud class action lawsuit due to a series of social media posts that caused sharp fluctuations in GME stock prices. On June 28, the Eastern District Court of New York filed a lawsuit, accusing Gill of failing to fully disclose his options transactions, suspected of a "pump and dump" scheme, and misleading investors.
Plaintiff Martin Radev claimed that he was damaged by Gill's actions. After Gill posted on May 13, GME's stock price soared 180%. On June 2, Gill disclosed on Reddit that he held a large number of GME shares and options, which pushed up the stock price again. On June 13, Gill said that he had exercised all options and made millions of dollars in profits.
Former federal prosecutor Eric Rosen said the lawsuit would likely be dismissed because Gill was not required to disclose his trading intentions in advance and the posts would be difficult to prove were misleading.
