Financial analyst Keith Gill, known by his nickname Roaring Kitty, faced a collective claimin which he was accused of securities fraud. The case concerns the high-profile story involving GameStop (GME) stock.
Dissatisfied investors
The plaintiffs allege that the expert manipulated market prices in order to carry out a pump and dump scheme. In their opinion, he used his influence on the community and through social networks achieved a significant increase in the value of shares.
The court documents also say Gill did not disclose all information about the purchase and sale of GameStop options. This allegedly misled his subscribers and led to losses among the company’s investors.
The key figure in the class action lawsuit is one Martin Radev, who claims he suffered from a pump and dump scheme after he bought 25 shares of GME and three call options related to the company’s securities.
Doomed lawsuit
Former federal prosecutor and founding partner of the law firm Dynamis LLP, Eric Rosen, said he believes Roaring Kitty has a good chance of winning the case. According to him, “the lawsuit is doomed to failure” because it has a number of obvious problems.
In particular, the assertion that Gill should have warned the community about the upcoming sale of options does not stand up to criticism, the lawyer believes.
The lawyer also emphasized that Roaring Kitty did not sell the options immediately before their expiration date. This could significantly harm the price of GameStop shares, he believes. The analyst acted wisely and implemented them in a timely manner, while purchasing additional securities of the company, Rosen noted.
The lawyer believes that another argument in favor of Keith Gill’s position is the investors’ motivation. In his opinion, it follows from the court documents that they were trying to make money on the stock price jump, using the very fact of the analyst’s publication of posts.
In other words, they invested in securities not because of their content, but only based on the appearance of posts on social network X (formerly Twitter). Rosen believes that the nature of this position resembles a “gamble” rather than a thoughtful investor strategy.
Finally, the lawyer pointed out another claim by the plaintiffs. According to them, Gill used “false publications” for manipulation. However, the Dynamis representative did not find any deception in these posts. He is confident that the analyst provided truthful information and the content of the posts is sincere.
Memcoins never sleep
The situation around Roaring Kitty and GameStop is closely intertwined with some assets. These are tokens that have no direct connection to the company or the expert himself, but are focused on a related topic.
Memcoins such as ROAR, KITTY and GME regularly “jump” in price, depending on the information background around the analyst and the company. The price of GameStop securities also demonstrates volatility, experts note.
Over the past 24 hours, the price of the GME token dropped by 1.1%, according to CoinGecko. Over the past week, the asset rate has increased by 21.5%. Moreover, if we take a time period of 14 days, it turns out that the cost of memcoin fell by 33.5%.
At the time of writing, the GME rate is hovering around $0.008. The asset’s market capitalization is $57.7 million.
Memcoin KITTY has increased in price by 16.9% over the past 24 hours, but at the same time, over a period of 14 days, its value decreased by 43%. During the preparation of the material, the asset rate is around $0.0059, according to CoinGecko.
ROAR memecoin has also seen a significant drop in price over the past two weeks, down 35.5%. The asset’s rate has fallen by 12.4% over the past seven days, and it has fallen by 0.8% in a day, according to data CoinGecko.
As for the securities of GameStop under the ticker GME, at the time of writing, the share price is at $24.6, according to TradingView. Over the last week, the rate has fallen by 2.2%, over a 30-day period it has grown by 12.2%, and over the past three months – by 87%.
Source: Cryptocurrency
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