GameStop Stock Slides as Keith Gill Faced ‘Pump and Dump’ Accusations

Shares of GameStop (GME) fell 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 faced 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).

Class-Action Suit Over GameStop Trading Dismissed

Gill has faced legal and regulatory questions in the past, testifying before Congress over his role in the original meme-stock craze. The class-action suit was filed in New York last week.

The complaint, which covered traders who bought GameStop shares between May 13 and June 13, alleged 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. The case was dismissed Monday, according to court documents.

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 finished Monday down 5.5% at $23.33.