Keith Gill is facing a new class-action lawsuit for his recent social media posts. However, a lawyer says the case is likely “doomed” to fail.
Keith Gill, a stock trader known for the 2021 GameStop short-squeeze, is facing securities fraud claims in a class-action lawsuit over a recent spate of social media posts that saw the price of GameStop stocks whipsaw violently between May and June.
However, a former federal prosecutor believes the lawsuit is likely “doomed” to fail.
Filed on June 28 in the United States District Court for the Eastern District of New York, the complaint intends to sue Gill for orchestrating a “pump and dump” scheme with a series of social media posts beginning May 13.
The complaint alleges that Gill committed securities fraud by failing to adequately disclose the purchase and sales of his GameStop options calls, which allegedly misled his followers and resulted in losses for some investors.
Represented by law firm Pomerantz, plaintiff Martin Radev said he was injured by the alleged “pump and dump” after he purchased 25 shares of GameStop and three call options beginning in mid-May.
Gill emerged from a two-year social media hiatus on May 13, posting a series of cryptic memes to his X account, sparking a 180% surge in the price of GameStop shares, which rocketed from $17.46 to $48.75 by the close of trading on May 14.
In a June 2 post to Reddit, Gill disclosed a sizeable position in GameStop, including five million shares of GameStop stock and 120,000 call options with an expiry date of June 21.
This sent the price of GameStop surging once again, closing above $45 on the day.
By June 13, Gill shared that he had exercised all 120,000 options calls, realizing millions of dollars in gains. Notably, he had used these gains to accumulate further GameStop shares.
The lawsuit claims that Gill did not sufficiently disclose his intent to sell his options calls ahead of time, which misled his followers and other market participants and resulted in losses for investors.
Complaint is likely “doomed,” says lawyer
In a June 30 blog post from former federal prosecutor Eric Rosen — the founding partner at Dynamis law firm — Rosen said the class-action complaint is “doomed from its inception” and could be easily dismissed if Gill files a “well-crafted” motion to dismiss.
Rosen said the claim that Gill should have disclosed his intent to sell his options would not hold up well in court, as no “reasonable person, let alone a reasonable investor,” would expect Gill to hold onto all of their options until the exact time and date of their expiry.
Secondly, Rosen said as it was “clear” the plaintiff was seeking to profit simply from the price impact of Gill’s posts on X, not from the actual content contained in his X posts, it would be difficult to prove one’s status as a “reasonable investor” in a court of law based on this approach.
“It is unreasonable to purchase securities simply because an individual named Roaring Kitty posted innocuous tweets on social media.”
Rosen said the most important part of pursuing a fraud case is proving that a fraudster has outright lied or intentionally misled investors by failing to disclose important information.
He explained it would be incredibly difficult to get past a judge, as a series of random memes posted by someone called “Roaring Kitty” on social media are not claims containing information that can be inherently proven or disproven.
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What does the future hold for the platform now that Bankman-Fried faces decades in prison, and is there any chance for a revival of the FTX exchange?Once a leading name in the crypto world, FTX faced a dramatic downfall in November 2022, leading to its bankruptcy. Recently, Sam Bankman-Fried, FTX’s former CEO, received a 25-year prison sentence for various crimes, including fraud and stealing user funds. This raises a big question: What happens next for FTX? Crypto.news is exploring how this verdict will impact the future of the exchange.
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As predictions of Cardano’s potential rally to $5 and $12.8 make waves, we’ve detailed the amount of ADA you need to acquire now to make a profit of $1M if the predictions come true. Several analysts have speculated that Cardano (ADA) could rank among the best performers this year when the bull market reaches its peak. Based on this optimism, these experts have issued outstanding predictions for Cardano, with some analysts projecting that ADA could reach an ambitious target of up to $12.8. For instance, Dan Gambardello, a famous investor and founder of a crypto capital venture, forecasted that ADA might eventually hit $12.8 if it consistently doubled its price, starting from $0.8. Interestingly, prominent market watcher Ali Martinez gave a less ambitious prediction for ADA, speculating that the asset could reach $5 before the end of the year. With Martinez and Gambardello expecting ADA to surge to $5 and $12.8, the prospect of attaining a $1 million investment should these predictions materialize has enticed Cardano investors. To become a millionaire when ADA hits $5, an investor must acquire 200,000 ADA. With ADA priced at $0.6218, the 200K ADA coins are currently worth $124,360. If the price of ADA eventually spikes to $5 this year, as projected by Martinez, this could turn the $124,360 investment into $1M. For context, ADA must rally 704.1% from its current price to reach the $5 target. ADA’s $12.8 prediction issued by Gambardello is a more ambitious target than Martinez’s forecast. Hitting the $12.8 target requires ADA price to spike 1,958.54% from its current price. If an investor is planning on making a return of $1M when #Cardano eventually spikes to $12.8, they would need to scoop 78,125 ADA. These 78,125 ADA coins are currently valued at $48,578 in the hours leading up to press time. Should Cardano surge from its current price of $0.6218 to hit the ambitious target of $12.8, your $48,578 investment in ADA today would give you a $1M return. Meanwhile, last year, popular crypto influencer Ben Armstrong, popularly known as BitBoy, highlighted three scenarios on how investors can become millionaires in Cardano. In the first scenario, he disclosed that investors could make a return of $1M if the coin’s market cap surges to $175 billion, bringing its price to $5. Here, a holding of 200K ADA could give the investor a profit of $1M if ADA reaches the $5 target. Additionally, BitBoy speculated that many Cardano investors who hold at least 125K ADA coins could become millionaires if the price hits a target of $8. Lastly, the crypto influencer expects investors with 100K ADA in their portfolios to make a return of $1M if ADA’s price touches $10. Per BitBoy, ADA could surge past $3 during the peak of the bull run. He noted that factors like Hydra upgrade and growing interests in emerging economies would pave the way for Cardano’s potential rally above the $3 mark.
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In 2013, Billy Markus, known on the X app (formerly Twitter) as “Shibetoshi Nakamoto,” launched the original meme-inspired cryptocurrency, DOGE, in collaboration with Jackson Palmer.
Both left the project soon after launch, but Markus remains watchful on both DOGE and the whole crypto space, frequently publishing sarcastic posts on X/Twitter platform.
This time, he has commented on the idea of adding DOGE to the tipping option on the aforementioned social media network after hearing claims that Bitcoin and Ethereum, even though they have been added officially, are hardly ever used for tipping content creators.
The discussion that was later joined by Billy Markus started with a tweet by user @dogeofficialceo. In it, the DOGE fan shared that he has the tipping feature that uses BTC and ETH installed in his Twitter/X account, first implemented under Jack Dorsey’s leadership over the company.
However, @dogeofficialceo stated that, so far, he has “never received a single tip” in BTC or ETH, nor has he heard of anyone using them at all.
Still, he claims that the Dogecoin community has been actively using third-party applications such MyDoge wallet and sodogetip to make daily DOGE transactions on X/Twitter. The user finally said that should X finally implement crypto payments, it would make sense “to support the one that's being most actively used” – DOGE. To add weight to his tweet, the user published a screenshot from his profile, where a Bitcoin and an Ethereum wallets can be seen.
Ironically, soon after this tweet was published, the author received a tip of 0.001 ETH on X via the above-mentioned internal feature. The Bitcoin tipping feature was launched in September 2021, and the same mechanism for ETH tipping was added in February 2022.
Billy Markus joined the heated discussion in the comments. “Shibetoshi Nakamoto” seems to agree with the point made by @dogeofficialceo. Besides, Markus is definite that adding DOGE would be an easy thing to do, and it would only take a few hours.
Overall, the crypto community hopes that since X/Twitter keeps adding new licenses for payment transactions, DOGE payments will be implemented until the end of 2024.
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