Court dismisses class action lawsuit against “Roaring Kitty” Keith Gill

July 2, 2024

The US District Court for the Eastern District of New York has dismissed a class action lawsuit against Keith Gill, known online as “Roaring Kitty”. The plaintiff accuses the company of market manipulation of GameStop shares (GME).

Gill rose to fame as a financial analyst and investor during the 2021 GameStop stock rally. The lawsuit, filed by a shareholder, Martin Radev, accuses Gill of misleading investors through a “pump and dump” scheme via his posts written between May 12 and June 13, 2024.

According to previous reports, the allegations focused on Gill’s return to social media in May 2024 after a three-year absence. Following his return to Twitter, GameStop’s share price rose dramatically from $17.46 to $48.75, reportedly causing significant losses for short sellers.

Gill revealed that he holds a $181.4 million position in GameStop, including 5 million shares and call options. He also predicted that the stock would reach at least $20 per share by June 21, after which the stock price would rise 300%.

The lawsuit cited the connection between Gill’s online activity and the volatility of GameStop stock as evidence of market manipulation, but the court’s decision to dismiss the lawsuit suggests there is insufficient evidence to support those allegations.