GameStop Investor Drops Securities Fraud Lawsuit Against 'Roaring Kitty' Gill
Summary:
Investor Martin Radev, who accused GameStop stakeholder Keith 'Roaring Kitty' Gill of securities fraud, quickly dropped the lawsuit three days after registering it. The dismissal permits Radev to file a similar lawsuit in the future. Radev had alleged Gill artificially inflated GameStop share prices, leading to significant investor losses. Despite this, a law expert had predicted that the lawsuit could be easily dismissed. Meanwhile, Gill recently bought nine million shares of US pet retailer Chewy, leading to speculation of another potential short squeeze.
Keith 'Roaring Kitty' Gill, a GameStop (GME) stakeholder, was recently sued by fellow investor Martin Radev, who accused him of securities fraud. However, Radev dismissed the lawsuit mere three days post lodging it. According to CourtListener, Radev filed a voluntary motion to dismiss in the Eastern District Court of New York, leading to the suspension of the case on June 1. The attorneys providing counsel to Radev, Pomerantz Law, haven't disclosed reasons behind the abrupt termination of the suit or offered any comments on Cointelegraph's requests. Being a matter dismissed "without prejudice", Radev retains the option of lodging a similar suit in future. He had initially sent a filing on June 28 claiming that Gill had deliberately inflated GameStop share prices via a "pump and dump" deception via social media, resulting in investor losses. According to Radev, Gill committed securities fraud by not revealing to his followers or other GameStop stakeholders that he was planning to sell roughly 120,000 call options of GME before their June 21 expiration. Eric Rosen, a former federal prosecutor and founding partner at Dynamis LLP, had predicted in a June 30 blog post that the lawsuit could be easily dismissed based on its three fundamental arguments. Rosen speculated that proving Gill's fraudulent conduct might pose challenges to Radev, while also trying to prove himself as a "reasonable investor." He added that basing investment decisions on "innocuous tweets" from someone called Roaring Kitty is unreasonable. Gill, the primary figure behind the 2021 GameStop short squeeze, ended his two-year social media break on May 13, causing a huge fluctuation in GameStop prices due to meme tweets posted on his X account. He added roughly 4 million GME shares to his portfolio using profits generated from exercising around120,000 GME call options before their expiry date in June. Most recently, Gill acquired a 6.6% ownership of US pet retailer Chewy by purchasing nine million shares. The buzz is that Gill could potentially instigate another short squeeze with Chewy, though some believe just his buying shares can bolster the stock price. In other news, SocialFi is enhancing game revenue while the creator of Axie Infinity is considering moving away from Discord.
Published At
7/2/2024 4:10:12 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.