GameStop

Chewy

Bold

<p>The post <a href="https://coinpedia.org/news/roaring-kittys-bold-bet-keith-gill-invests-245m-in-chewy-amid-gamestop-lawsuit/">Roaring Kitty Invests $245M in Chewy, Triggers Stock Surge</a> appeared first on <a href="https://coinpedia.org">Coinpedia Fintech News</a></p> 
<p>Keith Gill, famously known as Roaring Kitty, has made headlines once again by acquiring 9 million shares of Chewy Inc. This move comes while he faces a class-action lawsuit related to his involvement in the 2021 GameStop stock rally.</p> 
<p>Will the lawsuit against Keith Gill for securities fraud have merit? Let’s find out.&nbsp;&nbsp;</p> 
<h2 class="wp-block-heading" id="a-bold-investment-move">A Bold Investment Move</h2> 
<p>Gill’s latest acquisition of Chewy Inc. shares, valued at $245.18 million, represents a 6.6% stake in the company. This purchase positions Gill as one of the largest shareholders in Chewy, a prominent pet products retailer listed on the New York Stock Exchange.</p> 
<p>The <a href="https://www.sec.gov/Archives/edgar/data/1766502/000110465924076457/tm2418581d1_sc13g.htm">SEC 13G filing</a> revealed that Gill acquired a total of 9.01 million CHWY shares, causing a notable 22% surge in Chewy’s shares during premarket trading. This substantial investment, worth over $245 million, makes Roaring Kitty a significant player in the company. Interestingly, this development followed a mysterious image of a dog posted by Gill on his social media profile, hinting at his future investment strategy. While Chewy’s shares soared, GameStop stock faced a 5% decline in pre-market trading on Monday</p> 
<h2 class="wp-block-heading" id="legal-troubles-looming">Legal Troubles Looming</h2> 
<p>Despite his successful investment in Chewy, Gill faces legal challenges related to his GameStop activities. A complaint filed on June 28 accuses Gill of orchestrating a ‘pump-and-dump’ scheme through a series of social media posts beginning May 13. The plaintiffs allege that Gill’s posts misled his followers, resulting in financial losses for many investors.</p> 
<p>Former prosecutor Eric Rosen doubts the lawsuit’s success, citing the difficulty in proving the allegations against Gill. He argues that social media activity alone is insufficient to establish guilt. The lawsuit claims Gill did not properly disclose his transactions involving GameStop options calls, allegedly deceiving his supporters and causing financial losses for certain investors. </p> 
<p>Plaintiff Martin Radev, represented by the Pomerantz law firm, claims he suffered losses due to the alleged scheme, having bought 25 GameStop shares and three call options, which later dropped significantly in value.</p> 
<h2 class="wp-block-heading" id="h-market-reactions-nbsp"><strong>Market Reactions&nbsp;</strong></h2> 
<p>In response to the legal challenges, GameStop’s stock price has continued to decline. At press time, GameStop stock plunged 6.89% to $22.99 in Monday’s pre-market session. Earlier last week, the GME stock closed at $24.69, marking a 1.59% drop on Friday, June 28. Meanwhile, Chewy’s shares rose as much as 29% in premarket trading.</p> 
<p>Despite the ongoing lawsuit, Gill’s investment may draw increased attention to Chewy from investors, potentially reflecting a strategic move as the company focuses on market expansion. </p> 
<p>This high-profile acquisition could signal new growth opportunities for Chewy and highlight Gill’s knack for identifying promising investments even amid personal legal battles.</p> 
<p><strong>Can Gill avoid legal trouble this time around? We’ll have to wait to see. </strong></p>

Roaring Kitty Invests $245M in Chewy, Triggers Stock Surge

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