WallStreetBets Lawsuit Against Reddit Dismissed
A US judge has dismissed the lawsuit filed by Jaime Rogozinski, the founder of WallStreetBets, the renowned online community known for popularizing “meme” stocks. The lawsuit accused Reddit of unjustly banning Rogozinski from moderating the community and infringing on his trademark rights, as reported by Reuters.
Rogozinski alleged that Reddit removed him in April 2020 with the intention of preventing him from controlling the highly recognized WallStreetBets brand, which played a pivotal role in contributing to Reddit’s impressive valuation of $10 billion by late 2021.
US District Judge Maxine Chesney in San Francisco issued a comprehensive 15-page decision dismissing Rogozinski’s claim of owning the WallStreetBets trademark. The judge rejected his argument that the market associated the trademark solely with him and that he was solely responsible for its fame. Despite Rogozinski’s application for the trademark in March 2020, when the community had 1 million subscribers (currently standing at 14 million), the judge found his argument insufficient.
Furthermore, Judge Chesney dismissed Rogozinski’s state law claims related to his removal from the community. She stated that these claims were either preempted by a federal law that provides extensive immunity to websites that primarily publish external content or that Rogozinski lacked the necessary legal standing to file the lawsuit, according to Reuters.
However, Chesney did leave room for Rogozinski to amend his complaint, offering a potential opportunity for further legal action. In response, Rogozinski’s lawyer, James Lawrence, expressed disappointment with the ruling but maintained his client’s confidence and commitment to vindicating his rights.
“While we are disappointed with today’s ruling, Mr. Rogozinski remains confident and committed to vindicating his rights,” Lawrence said in an email.
Reddit, on the other hand, chose not to comment on the matter. The platform has previously described Rogozinski’s lawsuit as a “transparent attempt to enrich himself.” Reddit asserted that its involvement aimed to prevent consumer confusion, preserve goodwill, and allow the members of the r/WallStreetBets subreddit to determine the community’s direction.
Rogozinski sought a minimum of $1 million in compensation as part of his legal action.
The phenomenon of “meme” stocks has gained traction through discussions on online platforms like Twitter, often involving inexperienced investors. The popularity of these stocks frequently leads to unpredictable price fluctuations that do not necessarily align with the underlying fundamentals or financial health of the associated companies.
Prominent examples of meme stocks have included AMC Entertainment Holdings, GameStop, Koss, and the now-defunct Bed Bath & Beyond.
Information for this briefing was found via the Mint, Reuters, and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
