A GameStop investor who accused Keith ‘Roaring Kitty’ Gill of securities fraud has withdrawn his lawsuit just three days after filing it. The plaintiff, Martin Radev, voluntarily dismissed the complaint on June 1 in the Eastern District Court of New York.
Quick Dismissal Raises Questions
The lawsuit’s abrupt dismissal has left many speculating about the reasons behind it. The law firm representing Radev, Pomerantz Law, did not respond to requests for comment. Since the suit was dropped “without prejudice,” Radev retains the option to file a similar lawsuit in the future.
Allegations Against Gill
Radev filed the lawsuit on June 28, accusing Gill of orchestrating a “pump and dump” scheme to artificially inflate GameStop’s stock price for personal gain, causing losses to other investors. The complaint claimed that Gill failed to disclose his intention to sell 120,000 call options on GameStop shares before their June 21 expiration date.
Legal Analysis
Eric Rosen, a former federal prosecutor and founding partner at Dynamis LLP, analyzed the lawsuit in a June 30 blog post. He argued that Radev’s case was weak and could be easily dismissed. Rosen noted that proving Gill committed fraud would be challenging and that Radev would have difficulty establishing himself as a “reasonable investor.”
“It is unreasonable to purchase securities simply because an individual named Roaring Kitty posted innocuous tweets on social media,” Rosen stated.
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Gill’s Influence on GameStop
Gill, known for his role in the GameStop short squeeze of 2021, returned to social media on May 13 after a two-year hiatus, posting cryptic memes that triggered significant volatility in GameStop’s stock price. In early June, he disclosed holding 120,000 GameStop call options set to expire on June 21, which he exercised to acquire an additional 4 million GameStop shares.
Recently, Gill acquired nine million shares in Chewy, a U.S.-based pet retailer, representing a 6.6% stake in the company. Some commentators speculate that Gill might attempt another GameStop-style short squeeze with Chewy, while others believe that his investment alone will boost the stock’s price.
