Zack Morris Faces Fresh Fraud Lawsuit Seeking $1 Million In Damages
A lawsuit has been filed against social media influencer Zack Morris, legally Edward Constantin, seeking more than $1,000,000 in relief. The plaintiff, Ali Pourmemar, alleges that he lost a staggering $250,000 following Morris’s stock recommendations, accusing him of fraud by nondisclosure. Pourmemar is now seeking a jury trial to address the claims.
Pourmemar, an active stock trader from 2019 to 2022, found himself introduced to Morris through social media platforms. Morris, who operated under the X (fka Twitter) handle @MrZackMorris, was part of the financial Twitter (FinTwit) community. FinTwit is known for being an active and usually helpful network of amateur investors who openly share their investment ideas, due diligence, and research on Twitter.
Morris was part of a group within FinTwit, often referred to as a “gang,” that regularly posted what they believed were promising stock picks with the potential for price surges. These individuals boasted thousands of followers and would collectively decide on a particular stock to “pump” – essentially driving up its price. They would initially purchase the stock at a lower price and then, after sharing their recommendations on social media and podcasts, create increased demand, leading to a rise in the stock’s price.
What Pourmemar and other followers were unaware of, however, was that the individuals promoting these stocks were secretly “dumping” their own holdings once the price reached a predetermined higher level. This covert strategy, commonly known as a “pump and dump” scheme, resulted in rapid price increases due to market manipulation, followed by sharp declines as orchestrated sell-offs took place. Unfortunately, individuals like Pourmemar, who held onto these stocks, suffered significant losses, with Pourmemar estimating his losses at approximately $250,000 on stocks recommended by Morris.
The lawsuit covers an allegation of fraud via nondisclosure, mainly accusing Morris of failing to disclose material facts related to the stocks he recommended on social media. The undisclosed information was material, as plaintiff claims he would not have invested in these stocks if he had known about Morris’s involvement in a stock manipulation scheme.
Pourmemar is demanding a jury trial for this case and has submitted the appropriate fee with the petition.
In accordance with Texas Rule of Civil Procedure 47, Pourmemar seeks monetary relief exceeding $1,000,000 and any other appropriate relief to address the damages incurred.
Following this, another X account @FakePearBear shared how victims of Atlas Trading, the stock trading of Morris and the “Goblin Gang” from which they gave stock recommendations, can submit a victim impact statement for the US Department of Justice’s consideration in its suit against the social media influencer.
Back in July, the District Court of the Southern District of Texas — the court hearing the government’s case against Morris and the gang — saw a motion filed for the court to move to issue an arrest warrant for Morris.
The court filed the motion for Morris to be issued an arrest warrant due to him “attempting to obstruct the justice by pressuring a witness to provide false statements,” as well as for the “flagrant disregard of [the] Court’s orders.”
Due to the pressuring of a witness, the US Department of Justice argued that there are no conditions of release that are suitable for Morris, and as a result requested that the court issue a warrant for his arrest and revoke his bond through trial.
Information for this briefing was found via 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.
