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Keith Gill, the stock trader known for his role in the 2021 GameStop (NYSE:) short squeeze, is facing securities fraud allegations in a class action lawsuit related to recent social media posts that caused volatile price swings in GameStop (GME) stock between May and June.
The complaint, filed June 28 in the U.S. District Court for the Eastern District of New York, accuses Gill of orchestrating the “pump and dump” scheme through a series of social media posts beginning May 13.
GameStop shares fell more than 6% in premarket trading on Monday.
The lawsuit alleges that Gill engaged in securities fraud by failing to properly disclose his purchases and sales of GameStop options, misleading his followers and resulting in financial losses for some investors.
Plaintiff Martin Radev, represented by the law firm Pomerantz, claims he suffered losses from the alleged “pump and dump” scheme after purchasing 25 GameStop shares and three call options starting in mid-May.
Jill recently acquired a 6.6% stake in online pet retailer Chewy (NYSE: ), according to a filing with the Securities and Exchange Commission, sending the company’s shares up more than 17% on Monday.
The filing comes on the heels of a mysterious social media post by Jill featuring a photo of a dog, which already sent Chewy shares soaring to their highest level in nearly a year last Thursday.
