GameStop (NASDAQ:GME) stock is in the red today despite an interesting X post from CEO Ryan Cohen regarding mobile app development. Indeed, from his personal account, Cohen tweeted out in a search for mobile app developers.
“Looking for strong mobile app developers in Dallas. Email tateam@gamestop.com,” Cohen’s post reads. “Must be hands on, intense work ethic and previous experience building world class mobile apps on iOS and android. No college degree necessary.”
Unfortunately, the post clearly hasn’t sat well with investors. Indeed, GME stock is down about 5% today. Still, GME remains well in the green for the year, up about 40% following a series of meme-fueled rallies influenced by infamous meme stock investor Roaring Kitty.
GME Stock Slips as Roaring Kitty Faces Legal Action for Alleged Stock Manipulation
Speak of the devil, today news also broke that Roaring Kitty will face a lawsuit over an alleged “pump-and-dump” scheme surrounding his investments with GME stock.
If you recall, Keith Gill — better known as Roaring Kitty on social media — first gained notoriety in 2021 for helping orchestrate the initial short squeeze of GME stock, which sent shares to the moon. Gill has recently returned to X in a series of oft-vague posts, which has also resulted in tremendous movement in GME shares.
According to a lawsuit from plaintiff Martin Radev, Gill may have engaged in illegal activity by manipulating the share price of GME while owning large amounts of the security.
Retail investing blog Unusual Whales noted:
“The lawsuit claims that Gill secretly purchased a substantial number of GameStop call options before making a social media post on May 12, 2024, which reignited interest in the company’s stock. As a result, the stock price surged by over 74% the following day. Gill then allegedly disclosed his large stake in the company on June 2, causing another increase in the stock price.”
It’s unclear what will become of Roaring Kitty going forward. Gill is well-liked in the meme-stock world. Should he face legal pressure, it will likely strike a blow to the entire community.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
