Keith Gill, also known as "Roaring Kitty," is facing a class-action lawsuit alleging securities fraud for his involvement in a "pump-and-dump" scheme with GameStop shares. The lawsuit claims that Gill, through his social media posts, manipulated the stock price of GameStop, causing harm to investors who suffered significant losses. The suit alleges that Gill quietly purchased a large volume of GameStop call options, then disclosed his substantial position in GameStop, causing the stock price to surge. Subsequently, he allegedly sold and/or exercised all of the call options for a large profit, increasing his own stake in GameStop stock by over 4 million shares. The lawsuit was voluntarily dismissed by the plaintiff, but it has brought attention to Gill's trading activities and his impact on meme stocks. Gill's involvement in the meme stock frenzy has also attracted regulatory scrutiny, with reports indicating that the Securities and Exchange Commission and Massachusetts regulators are investigating his trading activity. Additionally, Gill's recent disclosure of a 6.6% stake in online pet retailer Chewy has influenced market reactions. Despite his past success in rallying retail traders behind meme stocks, Gill's influence seems to be waning as his recent social media posts have led to stock price fluctuations and legal challenges. While the lawsuit against Gill was dismissed, it has raised questions about the impact of social media influencers on stock markets and the potential for market manipulation.
