(Reuters) – The social media person "Roaring Kitty" at the center of last month's hectic rally in shares of GameStop Corp. violated securities laws and caused "huge losses" to investors, according to a class action lawsuit filed in the Massachusetts Federal Court.
Keith Gill allegedly withdrew his sophisticated financial education and tricked retailers into buying inflated shares, according to the complaint filed on Tuesday.
The trial comes before Mr. Gill is scheduled to testify on Thursday in Congress about the so-called "Reddit rally". According to the trial, Gill "encouraged" the demonstration, which was hailed as a victory for the little guys against Wall Street hedge funds that bet on GameStop and other struggling companies.
The trial of Christian Iovin, a state in Washington. resident who purchased GameStop options, also known as Massachusetts Mutual Life Insurance Co. and its subsidiary MML Investors Services LLC, which employed Mr. Valid until January 28.
MassMutual was required to monitor its activities as a registered broker, according to the lawsuit.
Mr. Gill and MassMutual did not immediately respond to a request for comment. MassMutual told Massachusetts regulators that they were not aware of Gill's external activities.
Mr. Gill, whose YouTube channel has 41
Mr. Gill reportedly bought the GameStop share for $ 5 and then used social media to drive shares from about $ 20 in early January to more than $ 400 in just two weeks, violating securities laws against manipulating the market, according to the lawsuit.
The stock was traded. about $ 46 on Wednesday.
The class action lawsuit aims to represent investors who lost money by betting on the stock before the rally or buying at inflated prices. Catalog