The US authorities are following the sharp rise in the price of the Gamestop share.
(Photo: Reuters)
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Washington Before the congressional hearing on the stock turmoil at the video game retailer Gamestop, the involved YouTuber “Roaring Kitty” was sued. A class action lawsuit brought by a Washington State buyer of Gamestop options accuses Keith Gill – his real name – of violating stock corporation law and causing investors “huge losses,” according to the lawsuit filed in Massachusetts, dated Tuesday.
It also mentions Gill’s employer through January 28, Massachusetts Mutual Life Insurance. A statement from the group was not available. He has stated that he had no knowledge of Gill’s activities.
In the lawsuit, Gill is accused of hiding his financial education and making private investors buy overpriced stocks. Then he triggered a price jump: Gill had driven the value of the titles he bought for five dollars on social media to more than 400 dollars. The course was on Wednesday at about $ 46.
Gill released a written version of his proposed testimony to the House of Representatives on Wednesday. “It’s absurd to think that I could have used social media to promote Gamestop stocks to ignorant investors,” he wrote. “I’ve made it abundantly clear that my channel was for educational purposes only and that my aggressive investment style was likely not appropriate for most people.”
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At the hearing on Thursday, Gill, the head of the trading platform Robinhood, Vlad Tenev, and the CEOs of the hedge funds Citadel and Melvin had to testify. The Financial Services Committee is studying how the stocks of Gamestop and other names could be propelled to dizzying heights. With concerted purchases, small investors had forced hedge funds to dissolve bets on the decline in the Gamestop price, which in some cases even got them into a mess and upset the world’s stock exchanges.
More: Showdown in the US House of Representatives Finance Committee: Thursday’s hearing will discuss the new power of Reddit traders, market manipulation and the future of free stock trading.
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