Ebene News – CA – Roaring Kitty, a Reddit trader, accused of fraud in the last savage trial at the release of the game

One of the more outspoken retail traders on Reddit’s WallStreetBets discussion board has been targeted in a proposed class action lawsuit alleging the 34-year-old former stock broker behind the widely followed character of “Roaring Kitty” has committed securities fraud for falsely portraying himself as an amateur online trader while driving up GameStop stock prices

Filed in Massachusetts federal court on Tuesday, the lawsuit alleges Keith Patrick Gill “took the fake personality of an everyday fan” to exaggerate and distort the outlook for GameStop’s action to millions of people. Reddit online traders and nearly half a million subscribers on YouTube

The lawsuit, first reported by Bloomberg, goes on to say that Gill called large hedge funds bypassing GameStop “evil and powerful big boys” and spurred a market frenzy to squeeze those short positions at “heavily inflated” prices while being licensed and employed by MML Investors, the brokerage subsidiary of MassMutual as CFO

The lawsuit – which also names MassMutual and MML Investors as defendants – ultimately argues that Gill’s employer failed to meet its legal and regulatory obligations to oversee Gill and prevent the alleged wrongdoing despite its “highly public” nature

The plaintiff, Christian Iovin, used $ 200,000 as collateral to sell GameStop stock option contracts on Jan. 26, when the stock was below $ 100, the lawsuit says; shares more than doubled the next day, prompting Iovin to buy out his options at exorbitant prices of $ 300 and $ 315, resulting in “substantial” losses

Iovin is represented by Hagens Berman, a law firm that regularly solicits clients for class action lawsuits, including one against Mercedes for diesel emissions breaches that ultimately resulted in a $ 700 million settlement

MassMutual declined to comment beyond saying he was looking into the matter; Gill says the idea that he used social media to promote GameStop action is “absurd”

“As a Chartered Securities Professional, including the time he was licensed and associated with MML and MassMutual, Gill was required to comply with various securities laws, rules and regulations of the [SEC ] and the FINRA rules, “says the 38-page suit The lawsuit specifically refers to five securities rules, including one that requires licensed securities professionals to observe “high standards of commercial honor and fair and equitable business principles” while conducting business and another stating that their public communications – on social media included – should “be fair and balanced” and “omit no material facts or reservations” if the omission could mislead investors

Gill is among a host of parties scheduled to testify before the House Financial Services Committee on Thursday.Other attendees include executives from online brokerage firm Robinhood, market maker Citadel Securities and Reddit

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“The idea that I have used social media to promote GameStop action to unwitting investors is absurd,” Gill said Thursday in prepared remarks for the audience. “I was absolutely clear that my channel was for educational purposes only and that my aggressive investing style was unlikely to be right for most people viewing the channel.”

In September 2019, Gill paid $ 53,566 04 to buy 1,000 calls on the company and posted his position on Reddit on September 8, 2019 as u / DeepFuckingValue, ultimately becoming a sensation on the Sa board. Investment-driven YouTube channel has racked up nearly 5 million views since its first video seven months ago

Tuesday’s lawsuit against Gill is far from the only litigation raised during last month’s GameStop debacle Robinhood is said to face dozens of lawsuits at the hands of disgruntled users alleging market manipulation, though the popular broker has repeatedly said its decision is only to maintain legally required cash reserves

I am a journalist at Forbes focusing on Markets and Finance I graduated from the University of North Carolina at Chapel Hill where I did a double major in Business Journalism

I am a journalist at Forbes focusing on Markets and Finance I graduated from the University of North Carolina at Chapel Hill where I did a double major in Business Journalism and Economics while working for the Kenan-Flagler Business School at UNC as a marketing and communication assistant Prior to Forbes, I spent a summer reporting on the private sector MOON for the Los Angeles Business Journal and wrote on North Carolina Listed Companies for NC Business News Wire Contact jponciano @ forbescom

Roaring Kitty, Keith Gill

Ebene News – CA – Reddit trader Roaring Kitty accused of fraud in latest savage lawsuit at the release of GameStop saga

Source: https://www.forbes.com/sites/jonathanponciano/2021/02/17/gamestop-saga-roaring-kitty-accused-of-fraud-in-the-latest-wild-lawsuit/