A GameStop investor who accused Roaring Kitty of committing securities fraud has voluntarily dropped the complaint “without prejudice,” meaning he can file another similar lawsuit again in the future. A GameStop investor who sued Keith Gill, known as Roaring Kitty, over alleged securities fraud, dropped his lawsuit just three days after filing it.
Plaintiff Martin Radev dropped the suit on June 1 after submitting a voluntary motion to dismiss in the United States District Court for the Eastern District of New York. It is unclear why the lawsuit was dropped so quickly, and the law firm representing Radev — Pomerantz Law — did not immediately respond to Cointelegraph’s request for comment.
Lawsuit Details and Allegations
The lawsuit, initially filed on June 28, alleged that Gill had used his influence on social media to orchestrate a “pump and dump” scheme. This scheme purportedly artificially inflated the price of GameStop shares for his own financial benefit, causing investor losses in the process. Radev accused Gill of failing to inform his followers and other GameStop investors that he planned to sell some 120,000 call options before their June 21 expiration date.
In a June 30 blog post, Eric Rosen, a former federal prosecutor and founding partner at the law firm Dynamis, commented on the lawsuit. Rosen suggested that the case rested on three main arguments that could be easily dismissed with a “well-crafted” motion from Gill. He stated that Radev would struggle to prove that Gill had committed fraud and emphasized the challenge of demonstrating that Radev acted as a “reasonable investor” in a court of law.
“It is unreasonable to purchase securities simply because an individual named Roaring Kitty posted innocuous tweets on social media,” Rosen wrote.
Background and Context
Keith Gill, the man behind the GameStop short squeeze of 2021, made a surprise comeback from a two-year social media hiatus on May 13, posting a series of cryptic memes to his X account, sparking significant volatility in the price of GameStop in the following months. Gill also made several posts on Reddit in early June, disclosing some 120,000 GameStop call options with a June 21 expiry date. He exercised these calls before their expiration date and used the profits to add a further four million shares to his portfolio.
Future Implications
Gill’s recent activities have drawn significant attention. His latest move involved acquiring nine million shares in the United States-based pet retailer Chewy, accounting for a 6.6% ownership stake in the firm. Several commentators have speculated that Gill might be preparing to orchestrate another GameStop-style short squeeze with Chewy. Others believe that the mere attention from his purchases will be enough to lift the price of the stock regardless.
The swift dismissal of the lawsuit against Roaring Kitty leaves open the possibility of future legal action. As the situation continues to unfold, investors and legal experts alike will be watching closely to see if Radev or others will attempt to bring similar claims against Gill. For now, the saga of Roaring Kitty and GameStop remains a captivating chapter in the annals of stock market history.
Source: Coin Telegraph
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