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The man allegedly behind the GameStop short squeeze is being targeted in a new class action, with claims average investors were misled by lies.
Lead plaintiff Christian Iovin says Keith Gill, more widely known as “Roaring Kitty” on YouTube, is actually an institutional trader hiding behind everyday guy personas on social media.
In reality, he’s a licensed security trader who was working with Massachusetts Mutual Life Insurance Company during the height of the GameStop stock frenzy, according to the complaint. Iovin says Gill is a professional trader holding extensive trading credentials.
Many retail investors began dialing into what he was posting about GameStop on Reddit and Twitter about a year ago under the name “DeepF—ingValue.” On YouTube, he posted videos under the name “Roaring Kitty.”
Iovin argues his posted content on all of these social media platforms were framed in such a way to make it sound he was out to get the wealthy hedge fund traders.
Gill not only misrepresented himself online, but also exaggerated the prospects of GameStop, the class action alleges.
“Gill fashioned himself as a kind of Robin Hood and characterized securities professionals as villains,” the lawsuit stated. “His social-media campaign was simply to increase the worth of his GameStop shares by creating a demand for the stock.”
Instead, his posts incited a short squeeze frenzy that created massive losses but left him in an estimated $48 million position.
Iovin reports taking Gill’s advice and using $200,000 in collateral to sell GameStop call options. He incurred massive losses after GameStop stock surged in January after being forced to cover those losses, according to the suit, after prices rose past $300.
Iovin says Gill violated Securities and Exchange Commission (SEC) regulations when he “incited” the short squeeze on GameStop in January.
But Iovin is not stopping with Gill. He also claims his former employer, Massachusetts Mutual Life (MML), is liable for not supervising his social media posts. Iovin argues MML has an obligation under SEC rules and the Financial Industry Regulatory Authority to supervise employees.
Gill was working with MML at the time as a Financial Wellness Director, according to the class action. Off the clock, Gill was allegedly posting to Reddit’s WallStreetBets forum, a page dedicated to security trading, and actively recruiting GameStop buyers on Twitter.
Gill knows WallStreetBets has an “undeniable influence on the financial markets,” the class action alleged, and was able to reach his personal goal of making millions with his posts.
Iovin is forming a class of members who heeded Gill’s advice and traded Gamestop.
Formally the class action lawsuit is accusing Keith Gill of violating the Securities and Exchange Act and violating U.S. Code prohibiting stock price manipulation.
Retail investors have filed scores of litigation arising from the GameStop short squeeze. Some of the most recent class actions are accusing brokers of a conspiracy.
If you lost any money in your GameStop stock during the trading restriction period you may qualify for a GameStop stock loss lawsuit investigation.
Did you invest in GameStop after taking Keith Gill’s advice? What do you think of this class action lawsuit? Let us know in the comments below.
Thomas M. Sobol, Steve W. Berman, Reed Kathrein of Hagens Berman Sobol Shapiro LLP; E. Powell Miller, Sharon S. Almonrode of The Miller Law Firm, P.C.; and Honigman LLP.
The Gamestop Investor Class Action Lawsuit is Iovin, et al. v. Gill, et al., Case No. 1:21-cv-10264, in the U.S. District Court for the District of Massachusetts.
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