GameStop Investor Withdraws Lawsuit Against 'Roaring Kitty'

A GameStop (GME) investor who sued Keith 'Roaring Kitty' Gill over alleged securities fraud has dropped his lawsuit just three days after filing it.

The plaintiff, Martin Radev, voluntarily dismissed the case on June 1 in the Eastern District Court of New York. The reasons behind the quick dismissal remain unclear.

It needs to be clarified why the lawsuit was dropped so quickly, and the law firm representing Radev, Pomerantz Law, did not immediately respond to Cointelegraph's request for comment. The suit was dropped ' without prejudice,' meaning that Radev can file a similar lawsuit again.

The lawsuit was first filed on June 28, with Radev alleging that Gill had used his influence on social media to orchestrate a ' pump and dump' scheme.

According to Radev, this scheme artificially inflated the price of GameStop shares for Gill's financial benefit, causing investor losses.

Radev claimed that Gill had committed securities fraud by failing to inform his followers and other GME investors that he planned to sell some 120,000 call options of GME ahead of their June 21 expiration date.

In a June 30 blog post, Eric Rosen, a former federal prosecutor and founding partner at Dynamis LLP, stated that the lawsuit rested on three main arguments that could be quickly shot down by a ' well crafted' motion to dismiss from Gill.

Rosen added that Radev would struggle to prove that Gill had committed fraud. He further noted that Radev was trying to profit from the hype of Gill's tweets and would need help to prove himself a reasonable investor in a court of law.

'It is unreasonable to purchase securities simply because an individual named Roaring Kitty posted innocuous tweets on social media,' Rosen remarked.

Gill, the man behind the GameStop short squeeze of 2021, made a surprise comeback from a two-year social media hiatus on May 13. He posted a series of cryptic memes to his X account, sparking massive volatility in GameStop's price in the following months.

Gill also made several posts on Reddit in early June, disclosing some 120,000 GME call options with a June 21 expiry date. He exercised these calls before their expiry date and used the profits to add 4 million GME shares to his portfolio.

Gill's most recent move has been to acquire nine million shares in the United States-based pet retailer Chewy, accounting for a 6.6% ownership stake.

Several commentators have suggested that Gill could be gearing up to pull off another GameStop-style short squeeze with Chewy. Others argue that the attention from his purchases will be enough to lift the stock's price regardless.