courtesy: Reddit
GameStop investors have dropped their lawsuit against Keith Gill, known as “Roaring Kitty” and who helped spark the meme stock mania of 2021, for allegedly defrauding them through a “pump-and-dump” strategy.
A proposed class action accusing Gill of securities fraud was filed in Brooklyn federal court on Friday but voluntarily withdrawn on Monday without explanation.
Pomerantz lawyers, who represent investors, did not reply to demands for comment.
Investors led by Las Vegas resident Martin Radev said Gill manipulated GameStop stocks between May 13 and June 13 by secretly accumulating huge amounts of stock and call options and then selling some after a three-year social media sabbatical.
Gill made “millions of dollars” by causing GameStop’s share price to fluctuate, they said.
“Defendant still enjoys celebrity status and commands a following of millions through his social media accounts,” the suit alleged. “Accordingly, Defendant was well aware of his ability to manipulate the market for GameStop securities, as well as the benefits he could reap.”
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