Image: RoaringKitty via YouTube
A random Washington state guy named Christian Iovine has sued Keith Gill, the Redditor known as DeepFuckingValue and Roaring Kitty, who invested in GameStop more than a year ago and became a WallStreetBets celebrity for his profits. Subreddit was made during the GME Short Squeeze.
The lawsuit alleges that Gill, through his social media posts, is somehow responsible for Iovine losing money and that he “sparked a hype by advocating revenge on the big hedge funds” by initially putting in approximately $ 60,000 in invested billions of dollars in a company. The lawsuit is being written by news outlets everywhere because it’s a lawsuit about one of the biggest stories of the year, not because it makes sense.
Iovine’s lawyers trying to make this a class action lawsuit claim that Gill’s fantastically popular YouTube videos – most of which have between 1,000 and 5,000 views – were so popular that people unwittingly and unwittingly invested in GameStop which caused the price to skyrocket and that their client had no idea this was happening and therefore could not make an informed decision about their own investments.
According to his attorneys, Iovine made a $ 200,000 wager on GameStop on Jan. 26 when GameStop stock rose from $ 76 to $ 347 on Jan. 27. At the time, GameStop’s meteoric rise – and how it was apparently caused not by the reality of the GameStop business but rather by a “brief press” – was literally one of the most talked about news in the world. Yet the complaint alleges that Iovine was “unaware of Gill’s fraudulent social media communications … [and] These transactions were based on the integrity of the GameStop stock market … while Gill’s manipulative social media behavior was driving the GameStop stock market into an unjustified frenzy. “Attorneys claim that Iovine’s option deals were carried out when GameStop stock was peaking or nearing, and that it later collapsed, causing him to” suffer significant losses “.
The gist of the attorneys’ line of reasoning is that Gill did not state that he was also a financial analyst and advisor to a Massachusetts company, and that he “did not take on the wrong role of amateur everyday person who just did it after the little guy Keep an eye out ”and manipulate the masses.
The lawyers argue that GameStop stock has appreciated because Gill explained in YouTube videos and Reddit posts why he personally invested in GameStop. These arguments don’t make sense on the surface to anyone who has even remotely paid attention to the story. Looking through Gill’s Reddit posts is pretty boring; They’re almost entirely made up of screenshots of his own investment portfolio (so people knew he was invested and had an interest in GameStop doing well). It was very evident on YouTube that Gill was not an “amateur” as he made extremely detailed arguments for why he personally invested in GameStop, including the company’s and senior management’s quarterly earnings reports.
The attorneys also argue that Gill “launched a wide-ranging and hugely successful social media campaign the year before GameStop stocks rose”.
Whether or not the lawsuit is successful, it is deeply troubling as it is essentially an attempt by attorneys and one random person to sue another random person for the crime of disclosure.
In this case, a person who made a bad investment decision to extract money from someone who was fairly transparent about their actions and prejudices (Gill believes GameStop is a good investment in himself that he has been repeating for over a year The lawsuit is worrying because it suggests that individuals can sue other individuals for social media posts that are not violent, threatening, or To be honest, all of this is also interesting.
Nor does the lawsuit go into detail about all of the other factors that caused the meteoric rise and fall of GameStop to Earth. It doesn’t seriously go with the fact that hedge funds overshooted the stock and released papers on why it was overvalued (arguably exactly what Gill is being accused of on a much larger scale), it doesn’t seriously go with the hype that went hand in hand with the rise of GameStop, and there is no mention of the Robinhood trading platform preventing users from buying more GameStop stock, which many investors believed caused the stock price to fall.
The lawsuit comes on the eve of a hearing about GameStop shares before the US House Committee on Financial Services. Gill did not immediately respond to a request for comment, but rather in his written testimony to that committeeHe appears to address some of the allegations made in the lawsuit: “I have not asked anyone to buy or sell the stock for my own benefit. I did not belong to any group that was trying to create movement in the stock price. I never had a financial relationship with a hedge fund. I had no information about GameStop other than what was public. I didn’t know any people in the company and I never spoke to an insider, ”said Gill.
“The idea that I used social media to promote GameStop shares to ignorant investors is absurd. I was fully aware that my channel was for educational purposes only and that my aggressive investment style was likely not appropriate for most of the people who check out the channel. Whether other individual investors bought the stock was irrelevant to my thesis – my focus was on the fundamentals of the business, ”he added. “What I expect for the future: GameStop’s share price may have outperformed itself a bit in the last month, but I am more optimistic than ever about a possible turnaround. In short, I like the stock. “
Iovine’s attorneys did not respond to a request for comment.