GameStop Bull Roaring Kitty Sees Damning Lawsuit Dismissed

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As a researcher with a background in finance and market analysis, I have closely followed the saga of Keith Gill, better known as Roaring Kitty or DeepFuckingValue, and his influence on GameStop’s stock price. The recent dismissal of the class action lawsuit against him is a significant development that highlights the complexities of social media-driven investing and the role of individual investors in shaping market dynamics.

Roaring Kitty, the prominent backer of GameStop (GME), regains his freedom as the legal action against him in the U.S. District Court for the Eastern District of New York is dropped.

Class Action Lawsuit Dismissed

Keith Gill, a well-known American financial analyst and investor, has found himself under legal scrutiny following the filing of a class action lawsuit. The allegation against him is that he masterminded a “pump and dump” scheme with regards to GameStop Corp.’s shares between May 12 and June 13, 2024. It is claimed that Gill deceived investors and potentially manipulated market conditions during this timeframe.

Keith Gill. Roaring Kitty $GME #GME Case Dismissed.
— Tony Denaro (@Tony_Denaro) July 1, 2024

As a legal analyst, I can tell you that on a recent Friday, in the federal court of Brooklyn, New York, I, Martin Radev, a GameStop shareholder, filed a lawsuit.

Significantly, Gill gained prominence due to his involvement in the dramatic increase of GameStop’s stock price in 2021. Through his livestreams and social media updates, he ignited a passionate following among individual investors, leading them to invest heavily in the company’s shares.

Out of the blue, he stopped responding to all communication channels for a staggering three-year span. Later on, in May, Gill resurfaced, leading to an explosive surge in GameStop’s stock price. Specifically, the value skyrocketed from $17.46 to $48.75, resulting in significant losses for short sellers, exceeding $1 billion.

At that point, Ihor Dusaniwsky, the managing director of predictive analytics at S3, shared some data. The amount of money invested in short positions was approximately $1.92 billion. This represented around 63.2 million shares being held short by investors. Furthermore, the short interest as a percentage of the float stood at 23.68%. Dusaniwsky noted that there had been ongoing short covering due to the resurgence of the meme trading phenomenon.

Roaring Kitty Influences GameStop Price

When Roaring Kitty came back, he disclosed to the audience the value of his GameStop shares, which amounted to $181.4 million. He provided evidence in the form of a screenshot, supposedly depicting his acquisition of 5 million GME shares for approximately $115.7 million and an additional investment of around $65.7 million in call options. The ardent GameStop supporter further anticipated that the stock price would surpass $20 per share by June 21, leading to a staggering 300% increase in value as a result of this announcement.

Roaring Kitty’s absence over the past few weeks has caused the stock to erase its Month-to-Date (MTD) growth. His periodic disappearance and reappearance, which coincided with the stock’s volatility, have added fuel to the speculation surrounding a “pump and dump” scheme in connection with the lawsuit against Gill.

Few specifics have emerged regarding the reason for the investor’s dismissal from the case. It’s plausible that the court could not find sufficient evidence to prove their guilt.

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2024-07-02 01:54