According to Odaily Planet Daily, Keith Gill (Roaring Kitty), a stock trader known for the GameStop short squeeze, is facing securities fraud charges in a class action lawsuit due to a series of social media posts that caused GameStop (GME) stock prices to fluctuate sharply between May and June. The lawsuit was filed in the Eastern District of New York, accusing Gill of orchestrating a "pump and dump" plan through social media since May 13, misleading followers and causing investor losses.
However, Eric Rosen, a former federal prosecutor and founding partner of the law firm Dynamis LLP, believes that the lawsuit was doomed to fail from the start because the allegation that Gill should disclose his intention to sell options does not hold up in court, and the plaintiffs are only trying to profit from the impact of Gill's posts on prices, not the content of the posts. Rosen said that proving fraud requires proving that the fraudster has lied outright or deliberately concealed important information, and Gill's social media posts are not statements containing information that can be proven or refuted.
