Keith Gill had encouraged retail investors to push up GameStop’s stock price. A class-action lawsuit has been filed against him in Massachusetts, US.
The lawsuit was filed in the wake of ‘artificially raising’ GameStop’s share price. He used YouTube, Twitter, and Reddit, to encourage others to buy GameStop shares.
The lawsuit is filed by Hagens Berman Sobol Shapiro, a securities class action company, on behalf of Christian Iovin in Washington.
At the start of 2021, GameStop’s share price was around $19. On January 28, its share price reached a record high of $483. This was an unprecedented hike. After the sudden rise, the prices fell, leaving investors with huge losses.
He has been accused of disguising himself as an amateur investor and a certified financial analyst. He holds multiple broker licenses and once worked in an insurance company.
For more than a year, Gill has been active promoting GameStop on the Reddit forum and has gained a large number of followers.
He posted a series of content that encouraged a large number of retail investors to invest in GameStop, leading the stock price to increase. It is alleged that Gill gained a handsome profit due to this artificial rise in the stock price.
Gill is reported to have violated rules of stock investment. The lawsuit alleges that he not only caused huge losses to those who bought the shares but also caused huge losses to those who were deceived by him and bought GameStop stock at a high price when the market was volatile.
Keith Gill insists that he has never asked others to trade stocks for personal profit and that he does not belong to any organization.
He will testify before the House of Representatives Financial Services Committee on February 18.