Just a few days after it was filed, a lawsuit accusing renowned stock influencer Keith Gill, popularly known as “Roaring Kitty,” of engaging in a “pump and dump” scheme involving GameStop Corp. (NYSE: GME) shares was voluntarily dismissed shortly after its filing.
The proposed class action, initiated by GameStop shareholder Martin Radev on Friday in a New York federal court, charged Gill with securities fraud, alleging that he sought to manipulate the stock for personal gain. However, by Monday afternoon, Radev had voluntarily withdrawn the lawsuit. The dismissal was “without prejudice,” a legal term indicating that the suit could potentially be refiled in the future.
“Dismissed without prejudice, so it’s not because they settled. They might refile with a different plaintiff,” posted Rob Freund, a legal expert, on X.
Neither Radev nor his legal team have provided an explanation for the abrupt withdrawal, nor did they respond to requests for comment. Gill also remained silent on the matter, declining to address inquiries via email.
Gill, who became a prominent figure during the 2021 meme-stock phenomenon, gained over a million followers on his “Roaring Kitty” YouTube channel and “DeepF***ingValue” Reddit page. In recent months, Gill reemerged on X once again discussing GameStop.
The lawsuit detailed that Gill acquired 120,000 call options in GameStop before he started posting about the company in May. At that time, the stock was trading at approximately $17. Following his posts, GameStop shares surged to $48.75 by May 14.
On June 2, Gill disclosed that he held 5 million shares of GameStop and 120,000 call options set to expire on June 21. By June 13, his holdings had increased to over 9 million shares, with no remaining call options. According to the lawsuit, Gill “quietly sold and/or exercised (i.e., dumped) all 120,000 of his GameStop call options for a large profit, seemingly to increase his own stake in GameStop stock by over 4 million shares.”
Despite the legal controversy, GameStop shares have retained some of their value, last trading in the $23 range, a significant increase from their pre-post levels.
GameStop’s recent price activity pales in comparison to the unprecedented surge during the 2021 meme-stock craze, when the stock skyrocketed over 1,700% in January. This surge was characterized by a dramatic clash between individual retail investors buying the stock and large hedge funds heavily shorting the struggling mall retailer.
GameStop last traded at $23.44 on the NYSE.
Information for this story was found via Bloomberg and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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