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Key Takeaways
- GameStop shares fell in intraday trading Monday as the meme stock faces another day of volatility.
- Markets are reacting 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 is also facing a class-action lawsuit over allegations of a “pump and dump” scheme with GameStop shares.
Shares of GameStop ( GME ) fell in intraday trading 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 is facing 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 ).
Gill Faces Class-Action Suit Over GameStop Trading
Gill has faced legal and regulatory questions in the past, testifying before Congress over his role in the original meme-stock craze, and could face more legal issues going forward after a class-action suit was filed in New York last week.
The complaint, which covers traders who bought GameStop shares between May 13 and June 13, alleges 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.
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 were down 4.7% to $23.54 as of 1:54 p.m. ET Monday.