GameStop Stock Slides as Keith Gill Faced 'Pump and Dump' Accusations

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Aaron McDade
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Aaron McDade is a breaking news reporter for Investopedia. He is an experienced journalist who has covered everything from the latest in business and tech news to sports and international news like the war in Ukraine for respected outlets like Business Insider and Newsweek.
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Updated July 01, 2024
04:51 PM EDT
Keith Gill, known on Reddit under the pseudonym Roaring Kitty, is seen on a fragment of a YouTube video displayed on a smartphone screen in front of the GameStop logo

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Key Takeaways

  • GameStop shares fell Monday as the meme stock faced another day of volatility.
  • Markets reacted in part to news about Keith Gill, the trader known as "Roaring Kitty" who was a defining piece of the initial meme-stock craze of late 2020 and early 2021.
  • Gill was revealed to have a 6.6% stake in online pet products retailer Chewy in an SEC filing Monday. He also faced a class-action lawsuit over allegations of a "pump and dump" scheme with GameStop shares, which was later dismissed.

Shares of GameStop (GME) fell Monday as investors reacted to news about Keith Gill, the investor known as "Roaring Kitty" who was one of the key drivers of the meme-stock craze of late 2020 and early 2021.

Gill faced a potential class-action lawsuit, filed late last week, over alleged manipulation of GameStop's share price. Investors may also think Gill has moved on from the video-game retailer after news of his 6.6% stake in online pet store Chewy (CHWY).

Class-Action Suit Over GameStop Trading Dismissed

Gill has faced legal and regulatory questions in the past, testifying before Congress over his role in the original meme-stock craze. The class-action suit was filed in New York last week.

The complaint, which covered traders who bought GameStop shares between May 13 and June 13, alleged that Gill bought a number of call options before returning to X in May with posts that he likely knew would inflate GameStop's share price. The case was dismissed Monday, according to court documents.

Subsequent reporting has indicated that regulators at the Securities and Exchange Commission (SEC) and in Massachusetts are looking into the trading activity around GameStop and his role in it. The Wall Street Journal has also reported that E*Trade and its parent Morgan Stanley (MS) are considering whether Gill's actions constitute market manipulation and warrant removing him from their platform.

GameStop shares finished Monday down 5.5% at $23.33.

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  1. UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK. "CLASS ACTION COMPLAINT."

  2. Congress. "TESTIMONY OF KEITH PATRICK GILL."

  3. UNITED STATES DISTRICT COURT EASTERN DISTRICT OF NEW YORK, NOTICE OF VOLUNTARY DISMISSAL.

  4. The Wall Street Journal. "E*Trade Considers Kicking Meme-Stock Leader Keith Gill Off Platform."

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