The GameStop scandal claims its first victim: "Roaring Kitty" is sued for securities fraud

Keith Gill, better known as "Roaring Kitty", was sued in a United States court for inflating the shares of GameStop for personal gain.

The success of r / WallStreetBets, which boosted shares in GameStop, AMC, and other companies, claimed its first casualty. Keith Gill, better known as Roaring Kitty on YouTube, faces a class-action lawsuit for manipulating the stock market for profit.

According to Bloomberg, the firm Hagens Berman Sobol Shapiro filed a lawsuit in Federal Court in Massachusetts. It is accused of lying to Gill to the present as an amateur investor since it has a licensed registered financial analyst and director of securities management and supervision.

"Gill was personalized as a kind of Robin Hood and characterized the professionals of values ​​as villains" indicates the legal document. The YouTuber is blamed for creating a social media campaign to increase the value of GameStop shares and make a profit.

Keith Gill is not an amateur investor and is far from a Robin Hood, according to the plaintiffs

The lawsuit mentions that Gill created a market frenzy by taking revenge on hedge funds by buying GameStop shares to drive up the price. The value increased by as much as 1,600%, causing substantial losses for funds and. In contrast, many small investors became millionaires overnight.

According to the legal document, Gill's "deceptive and manipulative" conduct violated numerous regulations and securities laws by undermining the integrity of the market. "It caused huge losses not only to those who bought options contracts but also to those who fell in love with Gill's act and bought GameStop stock," he says.

"I never asked anyone to buy GameStop stock to benefit me"

In addition to the lawsuit, Keith Gill was summoned to appear before the Committee on Financial Services of the United States House. Roaring Kitty was called as a witness at a hearing that will feature the CEOs of Reddit, Robinhood, Melvin Capital and Citadel.

The US lawmakers seek answers and Gill will be a key element in understanding the phenomenon of GameStop, which occurred in January. Various government entities are investigating whether there was market manipulation and whether Robinhood complied with federal regulations. The latter sparked controversy in recent days as the app restricted trading and was accused of giving in to pressure from Wall Street heavyweights.

As the audience arrives, Keith Gill remains calm. In his testimony prepared for Congress, he claims that he never asked anyone to buy or sell GameStop stock for his own benefit. He also mentions that he does not belong to any group that tried to create movements in the price of shares or have inside information of the video game store.

In recent days it was revealed that HBO, MGM and Netflix will produce films about the GameStop, Reddit and Wall Street scandal.