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Roaring Kitty Lawsuit Now Withdrawn After Just One Day

Key Points:

A class action lawsuit accusing investor Keith Gill (Roaring Kitty) of manipulating GameStop stock prices was filed and then withdrawn within a day.
The Roaring Kitty lawsuit, led by Martin Radev, alleged Gill used his social media influence to benefit from GameStop stock fluctuations.

Last Friday, a class action lawsuit was filed against investor Keith Gill, famously known as “Roaring Kitty,” accusing him of using his social media influence to manipulate GameStop (GME) stock prices for personal gain.

Roaring Kitty Lawsuit Suddenly Dropped

The Roaring Kitty lawsuit, led by investor Martin Radev, claimed that Gill’s actions caused significant price fluctuations in GameStop stock, benefiting him at the expense of other investors. However, the case was unexpectedly withdrawn on Monday, just one day after it was filed.

The lawsuit, titled “Radev v. Gill,” was filed in a Brooklyn federal court, alleging securities fraud. It detailed how Gill had amassed a substantial amount of GameStop stock and call options, then sold part of his holdings after a long absence from social media. The plaintiffs argued that Gill’s influence, supported by his millions of followers, allowed him to manipulate the market.

Despite the Roaring Kitty lawsuit’s quick withdrawal, the case highlighted the powerful role social media can play in stock market dynamics. Gill, a central figure in the 2021 meme stock phenomenon, was accused of causing GameStop’s share price to gyrate wildly, resulting in “millions of dollars” in profit for himself.

Gill’s New Chewy Stake Spurs 20% Stock Surge

The lawsuit’s withdrawal does not prevent it from being refiled in the future. The Pomerantz Law Firm, representing the investors, has not commented on the matter. Meanwhile, attention has shifted to Gill’s recent investment activities. On Monday, it was revealed that he had acquired a 6.6% stake in Chewy Inc., an online pet food retailer, leading to a 20% surge in Chewy’s stock price following the announcement.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.