Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses Exceeding $100,000 In GameStop To Contact Him Directly To Discuss Their Options
If you suffered losses exceeding $100,000 in GameStop between May 13, 2024 and June 13, 2024 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/GME.
New York, New York--(Newsfile Corp. - July 2, 2024) - Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against Keith Patrick Gill, known as "Roaring Kitty" on YouTube and the social media platform X (f/k/a Twitter) on behalf of investors of GameStop Corp. ("GameStop" or the "Company") (NYSE: GME) and reminds investors of the August 27, 2024 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
Faruqi & Faruqi is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. The firm has recovered hundreds of millions of dollars for investors since its founding in 1995. See www.faruqilaw.com.
The complaint alleges that Defendant engaged in a pump-and-dump scheme, whereby he: (i) shortly before his May 12, 2024 social media post on X, and unknown to investors, quietly purchased a large volume of GameStop call options on E*Trade at comparatively low prices; (ii) on May 12, 2024, reignited the meme stock movement and pumped the value of GameStop securities with his first social media post on X in nearly three years; (iii) after the prices of GameStop securities had abated, pumped the value of GameStop securities again via a June 2, 2024 post of his GameStop portfolio on Reddit, disclosing his large position in GameStop securities, including 120,000 GameStop call options and 5 million shares of GameStop stock; and (iv) by June 13, 2024, quietly sold and/or exercised (i.e., dumped) all 120,000 of his GameStop call options for a large profit, seemingly to increase his own stake in GameStop stock by over 4 million shares, belatedly revealing as much to investors on June 13, 2024, during after-market hours.
Defendant Keith Patrick Gill, known as "Roaring Kitty" on YouTube and the social media platform X (f/k/a Twitter), as well as "DeepF***ingValue" ("DFV") on the social media platform Reddit, is an American financial analyst and investor, as well as former financial analyst for Massachusetts Mutual Life Insurance Company, also referred to as "MassMutual." Defendant is also a former registered stockbroker who holds several securities-industry licenses, as well as one of GameStop's largest shareholders. As of June 2024, Defendant had over 1.6 million followers on X, 982,000 subscribers on YouTube, 116,000 members on his personal subreddit "r/roaringkitty" (ranked "Top 2%" in size among top Reddit communities), and 200,000 members on his personal subreddit "r/DeepF***ingValue."
On May 12, 2024, for the first time in nearly three years, Defendant made a post on the social media platform X, which took the form of a meme showing a "gamer"-that is, an individual that plays video games-in a suit, leaning forward in his chair in seeming concentration and/or attention. As reported by multiple news outlets, this meme was widely understood by Defendant's followers, analysts, and others to mean that Defendant was watching and/or following GameStop's performance. Over the next few days, Defendant posted a series of subsequent memes on X-largely taking the form of video clips with a battle or fight theme from popular movies and television shows, overlaid with text or other graphics-that were similarly understood to generally reflect Defendant's renewed interest in GameStop.
As the market reacted to Defendant's posts, GameStop's stock price surged, rising by $12.99 per share, or over 74%, to close at $30.45 per share on May 13, 2024-the first trading day following Defendant's post on X. GameStop's stock price continued to climb the following trading day, closing at $48.75 per share, an increase of over 179% from the stock's closing price of $17.46 per share on May 10, 2024-the last trading day before Defendant's post on X-only to normalize again and close as low as $18.32 per share by May 23, 2024.
On Sunday, June 2, 2024, to pump the prices of GameStop's securities back up, Defendant revealed his large stake in the Company via a post on Reddit, causing GameStop shares to soar more than 70% in early premarket trading on June 3, 2024. In particular, Defendant posted a screenshot of his GameStop portfolio on Reddit through his DFV account, revealing that he owned 5 million shares of GameStop stock and 120,000 GameStop call options with a strike price of $20, which were set to expire on June 21, 2024. Significantly, this post did not reveal when Defendant had purchased these securities.
On June 3, 2024, GameStop's stock price ultimately closed at $28.00 per share-21% higher than the prior trading day's closing price of $23.14 per share on May 31, 2024.
On June 3, 2024, shortly before markets closed, the Wall Street Journal ("WSJ") published an article revealing that Defendant had purchased "a large volume of GameStop options on E*Trade" shortly before his May 12, 2024 post on X that sent GameStop securities soaring. The WSJ reported that "E*Trade is considering telling Defendant that he can no longer use its platform after growing concerned about potential stock manipulation around his recent purchases of GameStop options, according to people familiar with the matter." The article reported that "[s]hortly before [Defendant] reignited a meme-stock craze in May, he bought a large volume of GameStop options on E*Trade," and that "[t]his week, Gill posted screenshots of an E*Trade account showing he owns GameStop shares now valued at $140 million and a new set of options that expire later this month. His total gains on the positions were at $85.5 million, he posted late [on June 3], showing his account remained in operation." The WSJ article stated that "E*Trade and its owner Morgan Stanley" had "concerns [Defendant] can pump up a stock for his own benefit" and are "debat[ing] whether his actions amounted to manipulation[.]" Finally, the article reported that "the Massachusetts securities division is looking into [Defendant]'s activities" and that "[t]he [SEC] has also been reviewing trading in GameStop call options around the time of [Defendant]'s social media posts[.]"
On this news, GameStop's stock price fell $1.50 per share, or 5.36%, to close at $26.50 per share on June 4, 2024.
Then, on June 13, 2024, during after-market hours, Defendant posted another screenshot of his GameStop portfolio on Reddit through his DFV account, showing that his portfolio no longer included the 120,000 GameStop call options set to expire on June 21, 2024, and that his position in GameStop stock had increased from 5 million shares to over 9 million shares, making him one of the Company's largest shareholders. Defendant profited handsomely from these transactions. In particular, before his May 12, 2024 post on X that reignited the meme stock movement, GameStop call options were generally trading at less than $3.00 per option contract. After his May 12, 2024 post on X and during the Class Period, the value of these options rose dramatically to an average of $10.16 per option contract, peaking at a closing price of $31.00 per option contract on May 14, 2024 during the Class Period. These same options traded at around $5.00 per option contract as of their June 21, 2024 expiration date.
Following news that Defendant had sold and/or exercised these GameStop call options, GameStop's stock price fell $4.42 per share, or 15.18%, over three consecutive trading sessions, to close at $24.70 per share on June 18, 2024.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Gill's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
To learn more about the GameStop class action, go to www.faruqilaw.com/GME or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
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