Renowned GameStop investor 'Roaring Kitty' sued for securities fraud over his role in the stock's epic surge
- Keith Gill – also known by the name Roaring Kitty on social media platforms – has been sued for securities fraud over his alleged role in the GameStop short squeeze.
- Gill first invested in GameStop in June of 2019 and developed a cult-like following as he documented his “YOLO” bet on Reddit’s WallStreetBets.
- He was named in a proposed class action lawsuit in Massachusetts, according to a court filing first seen by Bloomberg.
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Keith Gill, who goes by the name RoaringKitty on Twitter and YouTube, has been sued for securities fraud over his alleged role in the rise of GameStop stock, according to a court filing first seen by Bloomberg.
Gill gained a cult-like following as he documented his “YOLO” trade in GameStop on Reddit’s WallStreetBets forum for more than a year.
He invested $53,000 into GameStop stock and call options in June of 2019, and the value of those securities ultimately peaked at about $48 million during GameStop’s epic short squeeze last month.
Gill was named in a proposed class action lawsuit in Massachusetts on Wednesday. The lawsuit alleged that he misrepresented himself as an amateur investor when in reality he was a licensed securities professional. The suit also alleged that Gill profited from GameStop’s rise by artificially inflating the price of the stock.
“Gill’s deceitful and manipulative conduct not only violated numerous industry regulations and rules, but also various securities laws by undermining the integrity of the market for GameStop shares,” the lawsuit said, according to Bloomberg.
It continued: “He caused enormous losses not only to those who bought option contracts, but also to those who fell for Gill’s act and bought GameStop stock during the market frenzy at greatly inflated prices.”
GameStop has lost more than $20 billion in market value since its stock topped out at $483 on January 28. But investors who bought shares of GameStop weren’t the only ones to lose money in GameStop. Short-sellers that were betting against GameStop lost more than $1 billion.
Gill is due to testify to Congress on Thursday about the GameStop saga, along with the CEOs of Robinhood, Reddit, Melvin Capital, and Citadel.
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