Keith Gill, a stock trader known for his role in the 2021 GameStop (NYSE:GME) short-squeeze, is facing securities fraud allegations in a class-action lawsuit related to recent social media posts that caused volatile price swings in GameStop (GME) stock between May and June.
The complaint, filed on June 28 in the United States District Court for the Eastern District of New York, accuses Gill of orchestrating a “pump and dump” scheme through a series of social media posts starting on May 13.
GameStop shares fell more than 6% in premarket trading Monday.
The lawsuit claims that Gill engaged in securities fraud by failing to adequately disclose his purchases and sales of GameStop options, allegedly misleading his followers and resulting in financial losses for some investors.
Plaintiff Martin Radev, represented by the law firm Pomerantz, claims he suffered losses from the alleged “pump and dump” scheme after purchasing 25 shares of GameStop and three call options beginning in mid-May.
Gill has recently acquired a 6.6% stake in online pet retailer Chewy (NYSE:CHWY), a filing with the SEC showed, sending the company’s shares surging more than 17% Monday.
The filing follows a cryptic social media post by Gill featuring a picture of a dog, which had already driven Chewy's shares to nearly a one-year high last Thursday.