Keith Gill, the former financial analyst for MassMutual who sparked the meme-stock frenzy in 2021 by using his internet alter-ego Roaring Kitty, was slapped with a securities fraud suit by several GameStop shareholders in Brooklyn federal court.
Gill “engaged in a pump-and-dump scheme” by posting an item on Reddit in which he “belatedly reveal[ed]” to investors on June 13 that he amassed a considerable stake in GameStop, according to the claim, filed Friday.
Keith Gill, also known as the internet persona “Roaring Kitty,” is being sued in Brooklyn federal court. AP
In a June 2 Reddit post, Gill announced a $116 million bet on GameStop – sending the company’s stock price soaring by as much as 75%.
Gill attached a spreadsheet showing that he had bought 120,000 GameStop call options and 5 million shares of company stock.
According to the lawsuit, Gill “quietly sold and/or exercised” all of the 120,000 call options for a large profit “seemingly to increase his own stake in GameStop stock by over 4 million shares.”
He revealed the fact that he “dumped” the 120,000 call options on June 13.
Gill posted another screenshot of his E-Trade portfolio showing that he owned 9.001 million shares of GameStop and more than $6 million in cash.
Gill is accused of running a “pump-and-dump” scheme involving alleged manipulation of GameStop stock. ERIK S LESSER/EPA-EFE/Shutterstock
GameStop shares were trading at around $22.90 as of Monday before noon – meaning that Gill’s stake in the company is worth around $206.1 million.
“Everybody knows if you’re buying options with a rapidly approaching call date, [then] you’re going to be liquidating them,” he said.
Last month, The Wall Street Journal reported that E-Trade was considering possibly kicking Gill off of its platform due to concerns that he was engaged in stock manipulation.
Gill recently revealed that he increased his stake in GameStop — sending the company’s stock briefly surging. Roaring Kitty/YouTube
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