Roaring Kitty, also known as Keith Gill, was sued by a GameStop investor for alleged securities fraud, but the lawsuit was dropped just three days after it was filed.
The plaintiff, Martin Radev, voluntarily dismissed the lawsuit on June 1 in the United States District Court for the Eastern District of New York. It is unclear why the lawsuit was dropped so quickly, and the law firm representing Radev, Pomerantz Law, did not respond to Cointelegraph’s request for comment.
The lawsuit was dropped “without prejudice,” which means Radev can file a similar lawsuit in the future. Radev had alleged that Gill manipulated the price of GameStop shares through social media to benefit himself, causing losses for other investors.
According to Radev, Gill committed securities fraud by not disclosing his plan to sell 120,000 call options before their expiration date on June 21. However, a former federal prosecutor and founding partner at the law firm Dynamis, Eric Rosen, argued that Radev’s lawsuit would not hold up in court.
Rosen stated that Radev would struggle to prove that Gill had committed fraud, and that it was unreasonable for investors to make decisions based solely on social media posts. Gill, who orchestrated the GameStop short squeeze of 2021, recently made a comeback on social media, sparking volatility in the price of GameStop shares.
Gill also made posts on Reddit about his GameStop call options and used the profits to acquire more shares. He has since acquired a significant ownership stake in the pet retailer Chewy, leading to speculation about another short squeeze. Some commentators believe that attention from Gill’s purchases will lift the price of Chewy’s stock regardless of his intentions.