Roaring Kitty Faces Class-Action Securities Fraud Lawsuit, Discloses 6.6% Stake in Chewy

Jul 1, 2024, 12:07 PM

Keith Gill, known as Roaring Kitty, is facing a class-action lawsuit for securities fraud related to his social media posts about GameStop (GME). The lawsuit, filed on June 28, 2024, in the Eastern District of New York, alleges that Gill manipulated GME shares through a 'pump-and-dump' scheme. This is not the first time Gill has faced legal action; a similar lawsuit was filed against him in 2021. The current lawsuit was initiated by Martin Radev, who claims to have lost $213 on a $1,077 investment. In addition to the lawsuit, Gill disclosed a significant investment in Chewy (CHWY), filing an SEC 13G revealing a 6.6% stake in the company, amounting to 9 million shares. Following this disclosure, Chewy's stock initially surged as much as 29% in premarket trading but later declined. Concurrently, GameStop shares fell by 6.68% premarket. The lawsuit and the new investment have led to significant market reactions, with both GME and CHWY stocks experiencing volatility.