The U.S. District Court for the Eastern District of New York has dismissed a class action lawsuit against Keith Gill, known online as “Roaring Kitty,” alleging market manipulation of GameStop (GME) shares.
Gill rose to fame during the 2021 GameStop stock rally as he was a financial analyst and investor. The lawsuit, filed by a shareholder, Martin Radev, accuses Gill of misleading investors through a “pump and dump” scheme over his posts made between 12th May and June 13th, 2024.
According to earlier reports, the allegations were focused on Gill’s return to social media in May 2024 after three years away. Upon his return to Twitter, GameStop’s shares price went up dramatically from $17.46 to $48.75 which allegedly caused considerable loss for short sellers.
Also Read: Roaring Kitty Faces New Securities Fraud in GME Case
Gill disclosed a $181.4 million position in GameStop, including 5 million shares and call options. He also predicted the stock would reach at least $20 per share by June 21, after which the stock price increased by 300%.
The lawsuit pointed to the correlation between Gill’s online activity and GameStop’s stock volatility as evidence of market manipulation. However, the court’s decision to dismiss the case indicates a lack of enough proof to back these accusations.
