Keith Gill, known by his online personas “Roaring Kitty” and “DeepF—Value,” recently faced a lawsuit accusing him of orchestrating a pump-and-dump scheme involving GameStop securities. The lawsuit, filed by GameStop investor Martin Radev, claimed that Gill had deceived his followers on social media platforms like X and Reddit in order to profit from escalating stock prices. However, on July 1, the lawsuit was voluntarily dismissed by Radev.
Radev’s class action alleged that between May 13 and June 13, Gill artificially inflated GameStop’s stock prices through meme posts and insights that misled investors. According to Radev, Gill’s purchases of GameStop call options and the ensuing meme posts led to significant spikes in trading prices. On June 13, Gill reportedly sold 120,000 call options for a profit without informing his followers, causing them to incur financial losses.
Earlier reports suggested that E-Trade considered banning Gill due to suspected stock manipulation but was cautious of backlash from Gill’s significant online following. Radev argued that Gill’s prior experience as a financial analyst meant he was aware of the misleading nature of his posts. Moreover, Radev claimed Gill’s failure to disclose his positions in a timely manner had severely impacted other investors.
The lawsuit sought to disgorge Gill of any profits obtained through the alleged scheme and called for damages for affected investors. However, it was closed before any other members of the proposed class could join. Further details and commentaries on this development can be found on Ars Technica.