Roaring Kitty, one of the major online players behind the GameStop (NYSE:GME) stock surge, is facing a lawsuit over their part in the drama.
- Roaring Kitty is an online alias for Keith Gill.
- The lawsuit claims that he misrepresented himself as an amateur trader in the Reddit WallStreetBets.
- Instead, the lawsuit alleges that he’s a professional in the field.
- That includes citing his several broker licenses and previous employment by Massachusetts Mutual Life Insurance Co.
- Gill’s part in the GME stock rally saw him posting on various forms of social media, which likely helped build excitement for the shares.
- The Roaring Kitty lawsuit comes from Christian Iovin.
- Iovan is a short-seller that purchased $200,000 worth of GME stock at a price of $100 per share.
- When the stock surged and he had to fulfill the call options for the stock, he incurred massive losses as GME was trading at close to $400 per share.
- The lawsuit also targets Massachusetts Mutual Life Insurance Co. for not better supervising Gill as one of its employees.
- Massachusetts Mutual Life Insurance Co. hasn’t commented on the matter.
Gill said the following in a statement to the U.S. House Committee on Financial Services.
“Thank you Chairwoman Waters, Ranking Member McHenry, members of the Committee. Before I go further, I want to be clear about what I am not. I am not a hedge fund. I do not have clients, and I do not provide personalized investment advice for fees or commissions. I am an individual investor. My investment in GameStop and my posts on social media were entirely my own.”
GME stock was down 7.7% as of Wednesday afternoon.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.