Gamestop Corporation (NYSE:GME) – Class Action Lawsuit Filed Against ‘Roaring Kitty’ After GameStop Short Squeeze: What You Need To Know
Lawsuits related to the Gamestop Corporation (NYSE: GME) Short squeeze has strengthened after volatile trading in stocks in January.
Keith Patrick Gill, viewed by many as the leader of the debacle, is now facing a class action lawsuit.
What happened: On Tuesday, the Hagens Berman law firm announced it had filed a class action lawsuit against Gill in the US District Court, accusing him of “manipulating the price of GameStop stock”.
Gill is known as “Roaring Kitty” on YouTube and DeepF * ckingValue on Reddit.
In prepared remarks that Gill intends to submit to the US House Committee on Financial Services on Thursday, he denies wrongdoing.
“I have not asked anyone to buy or sell the stock for my own benefit. I did not belong to any group that attempted to create movement in the stock price. I never had a financial relationship with a hedge fund. I had no information on GameStop didn’t know any people in the company and never spoke to an insider, “said Gill.
Hagens Berman is also suing MML Investors Services and the Massachusetts Mutual Life Insurance Company.
The law firm accuses MML and Massachusetts Mutual Life of knowing that Gill manipulated the stock price and intends to mislead its 417,000 YouTube followers between January 22nd and February 2nd.
“Investors from all walks of life have been severely damaged by the price manipulation of Keith Gill and his clueless followers, who clung to every word,” said Steve Berman, managing partner of Hagens Berman, in a press release.
Why it matters: GameStop’s shares rose over 1,040% before falling over 80%, leaving many inexperienced traders who followed Gill on YouTube and the r / WallStreetBets forum with massive losses.
During the stock’s volatility, Robinhood and a number of banks restricted trading in GameStop as well as some other soaring stocks, causing further damage as customers couldn’t sell stocks until prices continued to fall.
Hagens Berman said it is trying to make good damage allegedly caused by Gill to traders who suffered financial losses from trading GameStop.
© 2021 Benzinga.com. Benzinga does not offer investment advice. All rights reserved.