Investor Keith Gill, known on social media as “Roaring Kitty,” is facing a securities fraud class action lawsuit related to his alleged artificial inflation of GameStop (GME) stock.
Yahoo Finance Reporter Josh Schafer joins Morning Brief to break down the lawsuit and what it will mean for Gill moving forward.
For more expert insight and the latest market action, click here to watch this full episode of Morning Brief
This post was written by Nicholas Jacobino
Video Transcript
Keith Gill also got hit with a class action lawsuit.
Josh.
Tell me what we know at this point about this lawsuit over alleged kind of pump and dumping of the GME stock.
Yes.
So it’s a class action lawsuit from someone that says they were impacted by the quote pump and dump of gamestop.
And essentially it alleges things that you would think it would allege of Keith Gill over the last month and a half.
It alleges that he was involved in essentially potentially manipulating the market.
He knows that he has power over what Gamestop stock or what he can do to Gamestop stock and it goes through a long list.
It’s a 40 page filing that goes through all the different times that Keith Gill has posted the market reaction and it does get again deeply into other sources, citing that he might be able to manipulate the market.
This is something that people have been speculating about since Keith Gill reemerged was that eventually a filing like this or a lawsuit could come.
So interesting to see that come, should note Gamestop shares dropped about 7{3da602ca2e5ba97d747a870ebcce8c95d74f6ad8c291505a4dfd45401c18df38} in pre market trading as this sort of started circulating.
And so I think the broader question as we come out of this is for one, it’s just a lawsuit filing for now.
Right.
We don’t know much more than that.
He has not publicly responded to it.
But will it take the meme crowd either away from Keith Gill or more toward Keith Gill as real action starts to against him, I think is the interesting question to watch moving forward is, are people gonna say?
Oh, I don’t really know what’s going on here.
I want to back away.
Or are the hodler’s really into supporting Keith Gill?
And do they sort of pile in to support him in this effort, I think is probably the most interesting thing to watch over the next couple of days with these shares.
