Keith Gill is accused of falsely presenting himself as an amateur investor and profiting by inflating the price of GameStop.
Keith Gill, one of the most influential voices to push GameStop on the WallStreetBets Reddit forum, has been hit with a lawsuit that accused him of falsely portraying himself as an amateur investor and profiting by artificially inflating the price. of action.
The proposed class action lawsuit against Gill, who adopted the online nickname “Roaring Kitty,” was filed Tuesday in federal court in Massachusetts. The lawsuit said Gill was in fact a licensed securities professional who manipulated the market for profit. Gill touted GameStop shares through an extensive social media presence on Youtube, Twitter and Reddit.
“Gill’s deceptive and manipulative conduct not only violated many regulations and industry rules, but also various securities laws by undermining the integrity of the GameStop stock market,” the lawsuit said. “It caused huge losses not only to those who bought options contracts, but also to those who fell in love with Gill’s act and bought GameStop shares during the market frenzy at heavily priced. swollen.
According to the lawsuit, Gill, who has been extensively described by Bloomberg, The New York Times, The Wall Street Journal and others, was far from an amateur headlines picker. Rather, he is a chartered financial analyst who holds multiple broker’s licenses and was previously employed by Massachusetts Mutual Life Insurance Co. The lawsuit also named Mass Mutual and a brokerage affiliate of the company as defendants, claiming they had the obligation. to supervise the activities of Gill in the market.
“In order to motivate amateur traders, Gill has fashioned himself as a sort of Robin Hood and called the securities professionals bad guys,” the lawsuit said. “Gill, however, is not an amateur. For many years he worked actively as a professional in the investment and finance sectors.
The potential plaintiff representing the investors in the case, Christian Iovin of Washington State, sold call options on GameStop shares for $ 200,000 when the stock was below $ 100. The stock quickly eclipsed $ 400 a share, forcing it to buy back the high-priced calls.