Roaring Kitty Faces Securities Fraud Allegations Over GameStop Posts

Did Roaring Kitty manipulate GameStop stocks? Lawsuit claims fraud, but experts say it's a tough case to win.

Keith Gill, famously known as Roaring Kitty, has been hit with a class-action lawsuit alleging securities fraud related to his recent social media activity. The lawsuit claims Gill orchestrated a "pump and dump" scheme with GameStop stocks. However, legal experts suggest the case is unlikely to succeed.

Keith Gill, aka Roaring Kitty, faces securities fraud allegations over GameStop stock manipulation.

Key Points

Lawsuit Filed Against Keith Gill

• The class-action lawsuit, filed on June 28, accuses Gill of manipulating GameStop (GME) stock prices through misleading social media posts.

Alleged "Pump and Dump" Scheme

• The lawsuit claims Gill failed to disclose his purchase and sale of GameStop options calls, misleading investors and causing financial losses.

Gill's Return and Stock Surge

• Gill reappeared on social media on May 13 after a two-year hiatus, posting memes that led to a 180% surge in GameStop stock prices.

Significant Stock Positions

• In early June, Gill disclosed holding 5 million shares of GME stock and 120,000 GME call options, further influencing stock prices.

Legal Expert's Opinion

• Former federal prosecutor Eric Rosen believes the lawsuit is "doomed" and unlikely to succeed, as it would be difficult to prove Gill intentionally misled investors.

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While Keith Gill faces serious allegations of securities fraud, legal experts like Eric Rosen argue that the class-action lawsuit is unlikely to succeed. Proving that Gill's social media activity intentionally misled investors will be challenging.

The outcome of this case will hinge on whether the court finds Gill's actions constituted a deliberate attempt to manipulate the market.

Source: Cointelegraph