Lawsuit against GameStop trader Roaring Kitty dismissed just days after it was filed

On Friday, a class action lawsuit was filed against Keith Gill, aka Roaring Kitty, claiming that his hugely popular social media activities drove up the price of GameStop (GME) stock for his personal gain. On Monday, the plaintiffs voluntarily dismissed the suit.

The case, titled Radev vs Gill, effectively lasted in court for one working day – and was withdrawn just hours after the court issued a summons to Gill, asking him to respond to the complaint within 21 days.

A two-sentence notice issued by the plaintiffs' lawyers informed the court that they were withdrawing the suit without prejudice.

The news came shortly before markets closed in the US, where GME closed trading at $23.33, down 5% on the day and 16% over the past month.

This quick turnaround is another short chapter in the colorful and often chaotic story of Gill, who first came to prominence in 2021 as a leader of the early “meme stock” movement. Retail investors, empowered by access to the stock market through apps like Robinhood, rallied behind shares of companies like GameStop, shocking Wall Street.

In the now-withdrawn suit, the plaintiffs described Gill’s role in the stock market surge in 2021, then tracked his activities earlier this year, from his return to Twitter in May to his return to Reddit in June, and attempted to correlate his social media posts — and his later disclosures of stock and options holdings — with GME stock’s volatile movements.

The lawsuit included numerous screenshots of Twitter memes and Reddit posts. The plaintiff even cited reports that financial regulators were tracking Gill’s activities, and that ETrade was considering removing him from its trading platform.

The lawsuit alleged that Gill ultimately participated in a “pump-and-dump scheme” with GameStop stock, violating federal securities laws and causing “substantial losses and damages” to victims who “acquired GameStop securities at artificially inflated prices.”

Because the case was dismissed without prejudice, it does not prevent the plaintiff from later refiling his suit against Gill.

Meanwhile, Gill has apparently shifted his focus from GameStop to online pet food retailer Chewy — he revealed on Monday that he bought 9 million shares in the company last month.

Gill and the plaintiffs' law firm did not immediately respond to requests for comment. decrypt,

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